Editor Note: Steeped in history and mystery, laden with ornate and detailed beauty, dating back centuries, the fabulous Kremlin can be viewed in an online tour. Click on the frames and take a virtual tour of the entire Kremlin, sponsored by the Voice of Russia (CLICK HERE).

SPECIAL REPORT PREVIEW: The USEconomy is entering a critical phase of rapid deterioration. Recession is gathering momentum. The deficit will rise for the USGovt. The dependence upon USFed bond monetization will become more acute. The systemic breakdown is beyond the critical failure point. The thesis of broken economy is not central to the Gold market, but it will prompt a decision to let go the USDollar. For this reason, a Special Report has been assembled to feature several diverse broken parts. It is entitled "USEconomy as Dead Man Walking" for May publication. The focus will continue on the gold market and factors behind its Supply & Demand.

QUOTES ON GOLD

"To summarize: while the biggest geopolitical tectonic shift since the cold war accelerates with the inevitable firming of the Asian Axis, the West monetizes its debt, revels in the paper wealth created from an all-time high manipulated stock market, while at the same time trying to explain why 6.5% unemployment is really indicative of a weak economy, blames the weather for every disappointing economic data point, and every single person is transfixed with finding a missing airplane." ~ Tyler Durden (editor of Zero Hedge, more like 23% unemployment)

"Paper is poverty. It is only the ghost of money, and not money itself. Banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property, until their children wake up homeless on the continent their fathers conquered. (28 years later) I would rather the States should withdraw which are not for unlimited Commerce & War, then confederate with those alone which are for Peace & Agriculture." ~ Thomas Jefferson (always smartest guy in the room)

"Gold & Silver have already collapsed. Might they not spike when the transition happens? Perhaps, if the control grid by the banker cabal maintains. But it is silly to think there is much more collapse in the precious metals prices from a major event. When such an event happens, a massive amount of wealth will be looking for somewhere else much safer to go as refuge. Sure, much wealth will vaporize, but a considerable amount of wealth will seek effective refuge. It is hard to imagine that much of that will not be to precious metals, especially with Asia not being in the corrupted control grid." ~ Aaron Krowne (editor of Implode-Explode website journal, click HERE)

"It was an easy call a few months ago that the Saudis would shun the United States and turn to China, leaning toward them for protection. The break between the US and Saudi Arabia was clear over the Muslim Brotherhood in Egypt. The hardly covert support for the Al-Qaeda (al-CIA-da) is highly disruptive to spread reform and democracy to a culture that only knows monarchy and iron fisted rule. The USGovt thugs want to turn Saudi Arabia upside down and steal its gold. The Saudi cutouts have no more useful purpose, especially since their oil reserves are largely depleted. Besides, London bankers are stealing the Saudi gold on account. It means game over for the Petro-Dollar, the longstanding foundation for the USDollar as trade standard. What remains is the shouting and recognition." ~ Jackass

"[US Households] do not have access to the home equity that they had in the past. Families looked around for what was left, and they actually drained the value from the 401(k)." ~ Reid Cramer (New America Foundation, who responded to official data which indicate a 37% increase in USGovt penalties from early 401k withdrawals versus 2003, in contrast to only $704bn in outstanding home equity loans in 2013, down 38% from the 2007 peak)

"Stock shares are all paper subject to inflation by executive decree, leveraged to a gold price that is suppressed. Therefore mining stocks are leveraged to vanished profit line, and thus worthless." ~ Jackass

## INTRO GOLDEN NUGGETS

◄$$$ BULLISH SILVER HISTORICAL CHART IS WORTH WATCHING. $$$

Credit DavidP out of Europe for the chart. Notice the major historical support that stretches six to seven years. Notice the lingering cyclical index at extreme negatives that invites a powerful response. Suppression begs for a springback, as in nature doling out justice. The technical analysts call it a grossly oversold condition. See the King World News article (CLICK HERE).

◄$$$ GOLD ANTI-TRUST ACTION COMMITTEE HAD A HISTORY CHANNEL EXPOSURE, IN WHICH THE ABSENT USGOVT GOLD RESERVES WERE CITED... IT IS GREAT PUBLICITY. $$$

During a late night channel tour trying to set up for sleep, the Jackass stumbled onto Chris Powell of GATA on the History-2 Channel. His name was not shown during the pass, but his face was recognized. We met a few times at the regular GATA cocktail parties hosted at the Cambridge House conferences in Canada. The show put on display the Fort Knox vaults, and its high security, mentioning the accusation of absent gold from the protected vaults. It mentioned Powell's (GATA) claim that the USGovt gold reserves had been sold, or at least the Fort Knox contents were way down, possibly to zero. No USGovt official was interviewed on the 30-minute show. It was great to see the publicity for the gold cause, in a broadcast of the GATA accusations for rampant sold USGovt gold reserves. Actually they were stolen by Clinton, Rubin, and Bush. It was shown in Spanish, but many of the points were caught well enough, since commentators usually speak with good quality diction. As footnote, one should know that Fort Knox is the repository of a massive amount of nerve gas, but also a few barrels of old 90% smelted gold coins from the Depression Era not yet refined, and a few carts of gold bars for mere show. The information comes from a good friend of COMEX George, who has the security contract at the fort. Ironically, when the GATA testimony part was being broadcasted, the sound reduced noticeably. As soon as the GATA part was over, the sound returned to a normal level. Games, more games.

◄$$$ JPMORGAN BLOODBATH OF QUARTERLY LOSSES TO BE FOLLOWED BY 10,000 MORE JOB CUTS... REVENUE STREAMS ARE DOWN 20% IN SOME BUSINESS SEGMENTS... RECENT JOB CUTS WILL ACCELERATE... INTERNAL CONFIDENCE IS VERY SHAKY... CEO DIMON MUST JUSTIFY HIS 74% COMPENSATION RAISE FOR YEAR 2013. $$$

JPMorgan is on the ropes, a very pleasant news item. Up to 10,000 more job cuts are on the table in addition to previously announced layoffs. Some brutal fundamentals have hit the corrupt crime syndicate bank conglomerate. The shrinking business and prowling regulators have led to tough decisions, as proprietary trading is in focus. The big bank is caught in a vise, between a bad economy, regulator pressures, and de-leveraging. The Jackass suggests a total liquidation and dissolved firm, with some assets side aside for future lawsuits. It is a sprawling banking complex, with $2.47 trillion in assets, but no longer officially the world's largest bank. Another massive round of job cuts is coming, following the 11% workforce but in 2011, when it had 280,000 employees. This February, they disclosed plans to eliminate 8000 jobs in consumer and community lending. They are exiting a commodities trading unit with 400 workers. It has sharply scaled back its mortgage lending, as well as in other activities such as student loans. The bank fired 100 people (20 percent) of its 500-person futures group in recent months. The sell side business do not share confidence in a plan to combine the leftover commodities business with fixed income and currencies into the FICC business.

The most recent news was a reduction in the Garden City Long Island mortgage department, where 155 employees will hit the streets. The bottom line is seeing red. The bank anticipates revenue from trading, fixed income, and equities to plunge 20% in the quarter, the damage to be in excess of $1 billion to the balance sheet. Many projects are put on hold, with big cuts to computer programmer jobs. A nasty side is exhibited. JPMorgan is closing accounts of past and present foreign government officials and ambassadors to save on compliance expenses, so they say. The actual reason is USGovt targeting of marginal nations on enemies lists. The final straw appears to be the hefty outsized 74% raise given to bank mafia capo CEO Jamie Dimon in 2013, a cool $20 million compensation to manage over ruin and crime scenes, with high risk workers tossed out upper story windows to silence their internal London Whale derivative losses, estimated at well over $100 billion. The Board of Directors is surely looking at each other, nodding that they made a big error. See the New York Post article (CLICK HERE).

◄$$$ GOLDMAN HAS PUT METRO METALS WAREHOUSING UNIT (A CASH COW FROM EXTORTION) UP FOR SALE... CLASS ACTION LAWSUITS HAD TIED UP THE WALL STREET SCOUNDRELS... ANOTHER CASE OF NEW SHERIFF FORCING SHUTDOWN, SINCE PROSECUTION IS NOT POSSIBLE OF CORRUPT BANKS. $$$

Goldman Sachs has begun a formal sales process for its controversial network of metals warehouses, calling them not strategic to client business (laughable). They are cash cows that extort from the USEconomy. Goldman Sachs is steeped in controversy over its commodity metal business, acquired for $540 million in 2010. It was built into one of Wall Street's biggest commodities traders. The Detroit-based Metro International Trade Services has its fate in the balance, bidders being contacted. Metro has become a cash cow for the bank amidst soaring global metal inventories but a business that has more recently become the focus of lawsuits, regulatory scrutiny, and public outrage. The Financial Times last year reported GSax was sounding out buyers for Metro. As of November, more than a dozen parties had expressed interest in buying the business including commodity trading houses, private equity groups, and several Chinese buyers. The Chinese insurer Ping An is interested, in addition to China Minmetals.

The practice of forcing long delivery times and extorted higher prices is coming to an ugly end. Yet another scummy GSax enterprise. Tightening regulation and intense political scrutiny are transforming the US physical commodities landscape, forcing some Wall Street banks to retreat from the lucrative business of dealing in goods ranging from oil to copper to grains. The Metro warehouse deals in aluminum, whose clients include end users such as Coca-Cola and Miller Coors. The popular brewer and vendor uses aluminium in beer cans, but claimed the logjams inflated raw materials costs by $billions of costs. The complaint is just one example among many. The London Metal Exchange has tried to impose a new rule to speed deliveries of aluminium and other metals from its registered warehouses

The conflict has reached the US Senate, which has in certain corners, like in Ohio, called for regulators to clamp down on bank ownership of other commodity assets such as oil pipelines and tankers. Victory has been proclaimed for beer and soft drink makers, a minor victory indeed. A class action lawsuit has accused Goldman, JPMorgan, their warehousing businesses, and the LME of conspiring to manipulate prices and supplies in the aluminum market. The Detroit Metro warehouse had the second longest waiting time to deliver aluminum, an absurd 683 days. The longest in the industry was the 748-day queue at sheds in the Netherlands owned by Pacorini, a Glencore Xstrata company. Monopoly was cited, but fraud is the violation. Instead of prosecuting without success the protected criminal Wall Street gang, they are forced out of the business. Divestiture will become the norm, seen especially in Barclays. See the Reuters article (CLICK HERE) and the Ready Made Invest article (CLICK HERE).

◄$$$ CHINA SENT OIL RIGS TO DISPUTED WATERS OFF VIETNAM, WHICH GAVE LOUD PROTESTS... THE CHINESE APPEAR TO BE TESTING THE USGOVT GUARDIAN ROLE FOR SOUTHEAST ASIA, IMMEDIATELY AFTER THE OBAMA TRADE PACT TOUR... BAD RELATIONS ARE THE RISK IN THE REGION. $$$

In early May, China sent an oil rig into disputed waters of the South China Sea to begin oil exploration. The rig is near the Paracel Islands, inside the 200-mile exclusive economic zone of Vietnam, a move the government angrily protested. The Vietnam Govt claims that the waters, as well as the oil & gas reserves held beneath, belong to Vietnam. The drawn boundary lines in the South China Sea have long been a source of regional tension. China has escalated the conflict, stating plans for the oil rig to be in operation from June through mid-August. The observers expect for Vietnam not to risk war, the status quo gradually altered over time. The Vietnam Govt made an official statement, "All foreign activities in Vietnam's seas without Vietnam's permission are illegal and invalid. Vietnam resolutely protests them." The US-based Energy Info Admin estimates that the South China Sea holds 11 billion barrels of oil and 190 trillion cubic feet of natural gas, most of which is located in disputed territory. China estimates the oil & gas reserves could be much larger, and seem willing to jostle and bully their way. See the Zero Hedge article (CLICK HERE).

EuroRaj offered an informal interpretation of what message China might be giving to the USGovt, whose weak president just concluded a very bland trade pact tour to Southeast Asia. He wrote, "Looks like China is sending quite a few explicit messages to the cabal in WashingtonDC. We are ready to ditch the USDollar. Show us what you have in aircraft carriers, drones, missiles, whatever. We doubt you are prepared to fight a war in three theaters, namely Ukraine, Syria, and South China Sea. We doubt you will put your biggest debt security holder on sanctions, like done on Russia." More imperial over-reach response.

◄$$$ DEFINE AUSTERITY AS POISON PILL... SPANISH, ITALIAN, AND GREEK DEBT/GDP RATIOS ROSE TO RECORD HIGHS... AUSTERITY CANNOT SUCCEED WITHOUT SEVERAL CAPITAL FORMATION AND BUSINESS EXPANSION MEASURES PUT IN PLACE... NONE ARE, SINCE SACRED COWS ARE PROTECTED AND COMPETITION WITH CHINA IS FIERCE. $$$

The latest Eurostat data is out, monitoring economic and debt activity through end 2013. The EuroZone debt rose to a level just below record highs. Most people blame the austerity budget programs, which the Jackass consistently calls Poison Pills, since they fix nothing and make the patient far weaker with deeper debt. Reducing debt load is the objective, never met, since business activity shrinks. Portugal, Spain, and Italy all saw their public debt hit all time highs. The perennial basket case Greece saw debt rise by 3.0% to 175.1% of GDP. Italy saw debt rise by 0.5% to 132.6% of GDP. Spain saw debt rise by 0.6% to 93.9% of GDP, still below the alarm bell 100% mark. Other notables were Slovenia debt rising by 9.2%, Croatia debt rising by 5.2%, Cyprus debt by 2.4%, Finland debt by 2.2%, and Bulgaria debt by 1.4%. Rises were cited in terms of GDP size, the standard practice. The total EuroZone debt closed 2013 at a level of 92.6% GDP, just shy of its all time high and up from 90.7% a year ago, 87.4% two years ago. The Poison Pills of austerity do not work for a few reasons. The real waste of federal budgets is not cut, deemed sacred. The big bank liquidations are forbidden, deemed sacred. The excessive government tax and regulatory burden are not lifted, deemed part of the culture. The labor markets cannot compete with China, the new globalization force. It is really that simple. Ignorance of economic principles is widespread, if not universal in the West. The European nations should encourage businesses with capital formation, but they have forgotten how since locked in a socialist mindset with protected sacred cow corporations. See the Zero Hedge article (CLICK HERE) which includes some excellent tables.

◄$$$ OKLAHOMA HOUSE PASSED A BILL THAT REAFFIRMS GOLD & SILVER AS MONEY... ARIZONA REMAINS IN THE HUNT TO REMONETIZE GOLD... AFTER 50TH ANNIVERSARY OF STRIPPING SILVER FROM COINS IN 1964, THE SILVER DOLLAR HAS RISEN TO BE WORTH $20... NO PROTECTION FROM INFLATION HAS BEEN OFFERED. $$$

In late April, a bill to legalize Gold & Silver as legal tender was passed through the Oklahoma State House. The vote was 74-12 in favor, officially called Senate Bill 862. Some details on the language of the bill. "Gold and Silver coins issued by the United States government are legal tender in the State of Oklahoma. No person may compel another person to tender or accept gold or silver coins that are issued by the United States government, except as agreed upon by contract." Oklahoma is slated to become the second state to recognize Gold & Silver as legal tender authorized for payments of debts and taxes. Earlier this year, the Arizona Senate passed a similar bill, which remains stalled in the State House. Last year the Arizona weak kneed governor vetoed the gold as money bill, claiming it would interfere with tax collection, surely under federal pressure. Upsetting the balance of legal tender is difficult, and considered an assault on the federal fortress and towers. Currently all debts and taxes in the United States are paid with coin slugs and Federal Reserve Notes, aka USDollars. As footnote, the coins issued by the USDept Treasury have almost no gold or silver in them. But they do have production cost in excess of their face value. See the Tenth Amendment Center article (CLICK HERE).

The year 2014 is a little noticed 50th anniversary for the disappearance of real US Silver coins from circulation. Stipping coins of silver occurred in 1964. People responded by removing the valuable coins from circulation almost entirely and very suddenly. The American people correctly expected that silver was probably going to be a better store of value than paper USDollars, and the people were right. At silver's year-end 1960 price of 91 cents per ounce, the 0.77 ounces of silver in a Silver Dollar had been worth about 70 cents. But by late 1963, it was worth a dollar. Even in the rigged market (artificially low), with Silver priced near $20 per ounce, the silver in a Silver Dollar is worth around $15. The old silver-filled coins used to ring when dropped on a hard surface. Now they go clunk, since loaded with zinc and copper. The shift in coin makeup has come to symbolize a profound shift in the behavior of the USGovt with respect to money. The Roman Empire did the same thing, a practice called sovereignty. Ruin awaits the US, just like Rome. See the American article (CLICK HERE).

Maverick (former Quantum Group) investor Jim Rogers warns investors that governments could loot savings and pension plans, and soon. Rogers anticipates turmoil and chaos over the next decade, marred by monetary disaster or even war, bringing about continued economic breakdowns. The only response known by politicians to crisis is to print money. The endless turmoil and constant crisis will assure a much higher Gold price. He reminded the audience of his forecast of a falling official Gold price since year 2011. He mentioned the possibility of an overall 50% price decline from the top, to take price to the $1000 level.

Rogers anticipates also the government response to global economic decline, as measure to stay afloat, will be wealth confiscation. They will run out of money and turn boldly desperate. He warned, "For one, there will be more confiscation of wealth. Americans and Europeans have already made it legal to take money from private bank accounts, or at least parts of them, in order to bail out banks. They will likely help themselves to pension plans too. Gold & Silver should provide investors some protection against government confiscation. They will probably go for bank accounts and retirement funds, because they need cash. In fact, that is already happening in Argentina and Poland. Gold & Silver are no longer part of the monetary system, as they were back in the 1930s when they last confiscated Gold & Silver. From the government's point of view, Gold & Silver are not ideal. It is money they need." See the Sprott Global article (CLICK HERE).

◄$$$ COLLECTOR ART HAS SEEN ITS PRICE BUBBLE BURST... THE MARKET IS HARD ASSET, BUT ON THE FRINGE, AND A GOOD INDICATOR OF DISCRETIONARY MONEY FADING IN THE PUBLIC STREET FLOAT. $$$

The so-called Collectibles have seen the price bubble burst. The Art market is breaking down in a loud way, as 21 of 71 works failed to sell at the latest Sotheby's auction in New York City. Some mild distress has spread through the wealthy in the Big Apple, the indication from the important tangential market a clear signal. Framed art and sculptures are hard assets, but on the fringe. Many in the art world converged upon Sotheby's for the sales of Impressionist and modern art. When nearly one third of the art went unsold, the message of money drying up was detectable. The same mediocre results were seen at an unexciting night at Christie's the day before. Interpret the pair of auction duds as yet another example of how central bank fueling the USEconomy with liquidity has begun to suffer some setbacks in the upper echelon of society. Nor is the excess money trickling down to the plebeian crowd. In fact, the bubble that the entire USEconomy finds itself locked in might be breaking down at the systemic level. It should be noted that the primary demand from the auctions was from Asian buyers.

Asian buyers were by far the most active shoppers, bidden through their agents. The Asians managed to snap up $63.9 million worth of art, one third of the evening's $219 million total. The low end of the Sotheby estimate for sales was $218.1 million, the figure not met. At Christie's the garnered sales were $285.9 million, above its low estimate of $244.5 million. The house sold a Picasso work called "Femme dans un rocking chair' from 1956, finding its way back on the block. It sold for only $6.3 million, well below the anticipated $8 million to $12 million, to a likely Asian buyer via telephone bid. See the Zero Hedge article (CLICK HERE) and New York Times article (CLICK HERE).

◄$$$ RUSSIA HAS JOINED CHINA IN CONSTRUCTION PLANS FOR A CANAL TO RIVAL PANAMA'S... THE NICARAGUA LOCATION PRESENTS MAJOR CHALLENGES... IT SEEMS A DUBIOUS PROJECT, FROM CONSTRUCTION CHALLENGE, MISFIT OF NATURE, AND SANDANISTA OBSTACLES. $$$

When the Jackass first reported a canal in Nicaragua as having some tough construction challenges and water delivery differences, the project seemed unrealistic. The region has no rain forest, and is four times longer for digging, compared to the Panama Canal. Suddenly Russia, with its technology, is to join with China in the effort. It looks real. To be sure, the R&C team together have considerable muscle, extensive technology, and deep money pockets. The bigger goal might be domination of the Central American canal system entirely. China already operates the canal in Panama. A monopoly could be in the making. A new global military battle is over important passageways. But the Jackass sees the project as extending for 15 years. Get back to me in 2016 on the plans and progress. See the WND article (CLICK HERE). Ortega prefers to stay in the 1950 decade, warding off predatory capitalists, keeping a delicate balance with seven well-armed tribes. He has won a socialist victory of abject poverty in the nation. But the leader must see an upside advantage to teaming with long-time US rivals in Russia and China.

Consider some engineering obstacles. The canal would require passage through 60 miles of land to cover from the giant Lake Nicaragua (aka Lago Cocibolca) to the Atlantic in an extreme distance. The Pacific side would be easy. The lake is the 19th biggest in the world, equal or larger than some of the US Great Lakes. It is not a rain forest environment, which dictates a costly drain of Lake Nicaragua in the lock system, especially the distant locks. The Nica Govt will object to heavy usage of Chinese labor, as is the Beijing custom, instead of local Nicas, who are extremely hard working although not skilled. Costa Rica has a dominant Nica labor force (like 25% to 35%), known for a more diligent work ethic, often to send home money in remittances. The biggest observed challenges from the Jackass end are the nearly formidable engineering challenge, incongruous nature, coupled with the Ortega regime regulatory and permit obstacles (seeking payola). Extreme scorching heat will make the project rugged. As footnote, Russia is well along wiring Nicaragua in 3G cell phone and cableTV, on contract that has been at work since 2011.

## HOLY GRAIL & SHANGHAI LAUNCH PAD

◄$$$ HOLY GRAIL CONTRACT SIGNED, FOR GAZPROM SUPPLY OF 38 BCM OF NATGAS PER YEAR TO CHINA FOR THIRTY YEARS, STARTING IN 2018... THE PACT IS THE CORE FOR THE EURASIAN TRADE ZONE INCEPTION... GAZPROM SUPPLIES 160 BCM ANNUALLY TO WESTERN EUROPE, BY COMPARISON... NOTICE THE STICKY PRICE ELEMENT WAS NOT DISCLOSED, BECAUSE IT IS LIKELY AN ONGOING VARIABLE IN THE COMPLEX CONTRACT, WHICH WILL INVOLVE REGULAR PRICE ADJUSTMENTS... EXPECT FURTHER CONTRACTS, FURTHER PROJECTS, FURTHER INVESTMENT STAKES IN A FLUID SITUATION... THE STAGE IS SET FOR A GRAND DISPLAY OF DEFIANCE AGAINST THE USDOLLAR-BASED TRADE SETTLEMENT STANDARD. $$$

Russian Gazprom is set to supply Asia with 68 billion cubic meters (bcm) of natural gas annually. Last year, China consumed about 170 bcm of natgas and is expected to consume 420 billion cubic meters per year by the year 2020. As a result of disastrous foreign policy in the past two months, the USGovt finally pushed Russia into China's hands, culminating with a deal that was ten years in the making and was never certain, until the Ukraine crisis. One must wonder if the USGovt wishes to put the USDollar to rest, but prefers it done by Russian & Chinese (R&C) hands, the blame laid on the dastardly East. Then later, when the USEconomy is in great disarray, it will be the fault of R&C as blared on propaganda networks. Later still, when the Saudis discard the Petro-Dollar by accepting non-USD oil payments, it will be game over. The US will slide into a dark place, possibly a pariah nation, likely in need of global quarantine, possibly replete with toxic environment (water, land, air).

Russia & China have finally signed the long-awaited historic $400 billion Holy Grail energy deal with a natural gas center piece on supply and pipelines. After a decade of negotiations, and motivation prompted by the US/NATO/Ukraine confrontation, the two nations signed a 30-year gas contract amounting to around $400 billion. The concept of alienating Russia seems ludicrous if not delusional. Russia has been forced into China's embrace, in the early stages of what will be a far closer commercial, financial, political, and military relationship. Witness the birth pangs of the Eurasian Trade Zone and a new Eastern NATO rival. The details on the R&C Energy Pact involve some commercial secret elements on price and currency and payment structure. Notice the sticky price element was not disclosed, because it is likely an ongoing variable in the complex contract, which could involve regular price adjustments every year with new commitments and successes with setbacks. Complex long-term contracts often have price adjustments in future bargained contingencies. The Gazprom CEO Aleksey Miller was first to speak of the commercial secret, which will put into high gear the construction the new eastern pipeline linking the countries.

According to Itar-Tass, the compromise between Russian gas export monopoly Gazprom and Chinese National Petroleum Corporation (CNPC) on Russian gas price is estimated at $75 billion. The differences on the price for 38 and 60 billion cubic meters in natgas supply per year were $1.5 billion and $2.5 billion, indicating the negotiation as quite significant. Gazprom expected a base price of $400 for 1000 cubic meters, an expert of the Eurasian Development Research Center of the Chinese State Council said in April. On the other side of the table, the CNPC proposal was $350 to $360 for 1000 cubic meters. They need (needed) to bridge a 10% gap. The Jackass believes compromises will be made on price, adjusted later depending on output and final pipeline cost, with credits for investment and other contingencies. The entire R&C Energy Pact will surely contain some regular renegociations, not for the entire package, but for key elements on the margin.

A memorandum of understanding was signed in the presence of Russian President Vladimir Putin and President of China Xi Jinping on the second day of Putin's two-day state visit to Shanghai. Gazprom CEO Miller offered details on natgas to be delivered to China via the eastern so-called Power of Siberia pipeline. RT news teams were informed of the landmark energy deal prior to its signing after a conversation with Miller. The tougher details of the deal centered upon gas prices, pipeline routes, timetables for construction, as well as Chinese investment stakes in Russian projects. One can expect great pressure was put on Miller by Putin to compromise, to fit the deal within a timetable which included a Putin trip to Shanghai, and then a big economics forum attended by King Vladimir in St Petersburg. Apparently a major breakthrough in negotiations came on Sunday May 18th, when Gazprom chief Miller sat down with the CNPC chief Zhou Jiping in Beijing to discuss final details, including price formulas. Before Putin's visit to Shanghai, Russian Prime Minister Dmitry Medvedev gave reassurance that the agreed price would be fair, setting the stage. He said, "One side always wants to sell for a higher price, while the other wants to buy for a lower price. I believe that in the long run, the price will be fair and totally comparable to the price of European supplies. I would not look for politics behind this. I have no doubt that supplying energy to the Asia Pacific Region holds out a great promise in the future."

Europe remains Russia's largest energy market, four times the size of its China client energy market. Moscow will use every opportunity to diversify gas deliveries and boost its trade volume in Asian markets. Europe bought about 160 billion cubic meters of Russian natural gas in 2013, a much larger market. In October 2009, Gazprom and CNPC made contractual commitments toward a framework agreement for the Altai project which envisions building a pipeline to supply natural gas from fields in Siberia via the western part of the Russia-China border. In March 2013, Gazprom and CNPC signed a memorandum of understanding on Russian gas supplies to China along the so-called eastern Power of Siberia route. When both pipelines are activated, Russia can supply Asia with 68 billion cubic meters of gas annually. Last year, China consumed about 170 billion cubic meters of natural gas, and is expected to consume 420 billion cubic meters per year by 2020, data worth repeating. The USGovt sanctions, like with Iran, resulted in backfire. The Russian sanctions hastened progress to overcome the final sticky points. Russia was pushed into Chinese hands, culminating with a deal that was ten years in the making and was never certain, until the Ukraine crisis.

Infrastructure investment from both sides will be more than $70 billion and will be the world's largest construction project, with Russia providing $55 billion up front and China $22 billion, for building the pipelines on their territories. Except during summer months, hostile conditions will prevail. The graphic shows the plans, with dotted paths indicating projected lines not yet built. Much needs to be done. Siberia is vast and hostile and desolate. This is Gazprom's biggest contract to date, the largest project set in history. A separate additional route that could deliver gas to China's western provinces and provide diversification is also in the works, according to Putin. Many contingencies and expansions are to be expected, in a plan that is fluid and flexible, and not the least been static and rigid. The die is set for the framework of a flood of projects and pacts. Russia & China have signed 40 in total. For a partial list of key contracts, see the Russia Today article (CLICK HERE). See the Zero Hedge article (CLICK HERE) and the Reuters article (CLICK HERE) and Russia Today article (CLICK HERE).

The St Petersburg Intl Economic Forum has begun in earnest. Expect that Putin would delay certain disclosures, awaiting to make heralded announcements on home turf. Putin will be in full glory, basking in limelight, a success under his belt. The themes will be building macro-economic stability worldwide, and cooperation to address worldwide economic challenges. The United States is not to be in attendance. See the Russia Today article on the details of the forum (CLICK HERE).

◄$$$ THE SHANGHAI FREE TRADE ZONE IS MAKING RAPID INITIAL PROGRESS... MANY FIRMS ARE SIGNING UP, FROM A GREAT MANY NATIONS... THE CONCEPT WILL FLY, AS OTHER FREE TRADE ZONES SPRING UP IN CHINA... THE EFFECT WILL BE TO EXERT PRESSURE TOWARD FREEING THE GOLD MARKET. $$$

The Jackass had further conversations with London Paul, the savvy bank and financial analyst. It was a very interesting exchange worth sharing, on point, since he deals with clients who plan expansion to Shanghai. Big wide doors are opening. The message is clear. The Shanghai Free Trade Zone is going to expand like a financial mushroom cloud, and spawn other similar free trade zones. This is Chinese sponsored capitalism in exemplary style. Some details. It began when my side suggested that in the Shanghai FTZ, full convertibility of Yuan is a huge deal. Big players inside China will borrow outside China, and invest outside China. The Londoner made numerous comments in sequence. He said, "Yes [agreed], the FTZ has huge implications coupled with full convertibility. Interestingly, I have numerous people inside Iran who want to do business, sanctions aside, looking to investigate opportunities inside the FTZ. The credit specialist fund manager La Trobe Financial (head office in Melbourne) has formally registered in the FTZ yesterday. Up to a dozen additional FTZ in China are earmarked. Japan's Nomura to set up joint venture in Shanghai FTZ. Seems like there is a real push currently, as over 100 commodities traders to set up in Shanghai already."

The Jackass response rejoinder was that Shanghai (guessing) could eventually become the BRICS gold transfer station, redeeming toxic USTBonds, arranging for BRICS central bank. The FTZ just across from the HK-Chinese border will grow significantly also. It is the Shen Zhen FTZ, early in development right now. Its proximity to HK for logistics benefit will enable fast growth. The Voice confirmed the importance of the Shanghai FTZ, having mentioned it for a few months as being a great disruptive factor. It is the birthplace of the convertible Yuan currency finally. He said, "Shanghai FTZ is the Baikonour launch pad for new global trade and finance platforms. The Baikonur Cosmodrome is the Russian space launch station in the Khazak steppe." Get ready for liftoff in Shanghai, which will surely affect the Gold market, and apply pressure in significant ways to free it from the corrupt New York & London clutches.

## BRICS GOLD, BELGIUM BULGE, GERMAN HUB

◄$$$ FIRST, A CONVENTIONAL THEORY EXPLORED... RUSSIA MIGHT HAVE DUMPED 20% OF ITS TREASURY HOLDINGS AS BELGIUM ADDS ANOTHER OUTSIZED $40 BILLION... ONE IS LEFT TO WONDER IF BELGIUM IS THE NEW CUSTODIAN FOR RUSSIAN BONDS DROPPED ON EUROCLEAR, WHICH WERE NOT ACTUALLY SOLD... MAYBE SOLD AND REPORTED ON EUROCLEAR IN BELGIUM... SINCE BELGIUM HAS NO SURPLUSES OF ANY KIND, IT APPEARS RUSSIA HAS SWITCHED CUSTODIANS... LASTLY, THE USFED OR EURO-CB SIMPLY MIGHT LATER MONETIZE THE RUSSIAN BOND SALES WITH A FLIP OF THEIR MAGIC FRAUD LINE SWITCH.

THE QUESTION MUST BE RAISED WHETHER A HIDDEN PARTY (LESS OBVIOUS) IS DUMPING, SUCH AS AN ANGRY SAUDI ARABIA OR EVEN JPMORGAN WITH ESFUND SWAPS... IT COULD BE IRAN DUMPING ALONG WITH SAUDIS IN A NEW FRONT... THE GAME IS FAST CHANGING, USING BIG HIDDEN CHANNELS IN THE MONETARY WAR... THE DOLLAR EMPIRE WAS IN A MIDDLE STAGE OF COLLAPSE WITH QE3 BLESSED, BUT THE BELGIUM BULGE INDICATES A LATE STAGE OF COLLAPSE. $$$

Many are the suspected agents dumping USTreasury Bonds. The prime suspect is Russia, but it could be the Saudis, India, Iran, or even Norway, always angry at the US/UK tagteam dealing in incendiary diplomacy in Oslo. The Norweigians have been on the receiving end of London banker devious games to pull down the Krone currency, despite the huge surpluses. On its face, it appears Russia has unloaded a boatload of USTBonds with a proxy window in EuroClear. Their official reserves display the offset to the Belgium Bulge. Many are the suspects. It could be that Belgium is not taking Russian USTBonds, but rather Saudi-owned USTBonds after the angry Saudis learned of London stealing their Gold bullion. The US-London banksters might be hunted for Saudi gold in Swiss banks too. If the Credit Suisse power play toward UBS merger is motivated by a desire to steal Saudi gold in Switzerland, then the global war will have escalated. The ultimate vengeance by Saudi will be divestiture of USTBonds and full abandonment of the USDollar, followed by complete adoption of the Chinese Yuan and protectorate role. Later the final blow would be the formation and launch of the gold-backed Gulf Dinar. These steps would all be seen as declaration of war against US interests (common term used).

A major hubbub began last March, when total USFed custody holdings plunged by a record $104.5 billion. Attention was raised, bad attention, unwanted attention, but in the global monetary war over control of money, unavoidable. Many alert analysts suspected that Russia might have dumped some of its USTreasurys after the start of the Ukraine conflict, or at least change its bond custodian. Some confirmation has come in the May TIC data. The Treasury Investment Capital report indicated that Russia indeed dumped a record $26 billion in January, or some 20% of all of its holdings, bringing its post-March total to just over $100 billion. Their account has not been lower since the Lehman crisis. The Belgium site enjoyed a ripe $40bn rise in USTreasurys held, hardly from the country's non-existent trade surplus. Once again, the decline in Russian account is offset by rise in Belgian account. See the Zero Hedge article (CLICK HERE).

Two comments from well informed and well connected colleagues. GiuseppeS of Italy by way of London pitched in, with two decades of finance and export experience. He said, "I am following the flow on British Pounds in recent weeks. The GBP will be indexing with Asia soon, and will come though. Britain needs to get the hell out as soon as possible and operate as the Hong Kong of Europe. We understand that the American Colony game has had its run now. They failed and it is game over. Europe has become a PIGS Breakfast of corruption and Jesuits. Britain future is with BRICS, the old British Commonwealth, and Asia. We know Britain always worked to maintain a good business relationship [with certain exploit] with its partners throughout its history, including during the end of British Empire. Finally, we are at the end stages of a non-US dominated global asset backed system."

George of the COMEX Jungle pitched in with an apt perspective in battle terms. He said, "My opinion is Belgium is taking bonds being privately placed, orchestrated via the USFed, Wall Street, and London banks, but also by the huge swap market. It clearly seems like Russian dumping through secondaries. Overt dumping would be the equivalent of a declaration of war, but through secondaries there is quasi deniability. World monetary war is well under way."

Details are more interesting and add to the intrigue. The entity holding the USTBonds classified as Belgium is known as EuroClear. Could be Russia, China, the Saudis, Iran, or even possibly the JPMorgan & Goldman Sachs team on Wall Street. The Wall Street duo are active in hidden dark pools. It is possible the Russians and Chinese dumped USTBonds using proxy agents, and JPMorgan used the Exchange Stabilization Fund to clean up the mess and hide the trails. It also could be more simple, that Draghi took action at the Euro Central Bank, pulled a lever, and the EuroClear soaked up the dumped Russian bonds. Some recent weakness in JPM & GS stock values might be telling that the two big US banks are being stuffed with either USDollars or USTreasurys. If so, it would not it reflected on their balancesheet, hence the off-shore activity. Repercussions would be important and disruptive. If the market comes to know that JPM or GSax is long a huge $100bn in USTreasurys, then no entity could step in to buy them without another round of QE, as in QE4. The USFed definitely does not want such a sequence to occur. Perhaps the position is intended to conceal the true gigantic extent of London Whale losses through the JPM CIO investment office. Nothing is definitive, but many are the potential sources, indicative of broadening crisis. Thus the Belgium Bulge.

Intrepid Rob Kirby added some investigation by checking the websites for the Belgian National Bank and Belgian Ministry of Finance. It shows no corresponding entries in the Belgian Reserve Position over the relevant months to correlate with this massive rise in securities held in the name of Belgium. The USTreasury Bonds are unquestionably being held in a proxy like EuroClear. But United States Treasury posts official data showing that Belgium aids and abets a serious cancer in the Global Financial System. Furthermore, as Kirby describes it, Belgium is not alone as the designated USFed water boy. The latest TIC Report revealed Luxembourg with a $9 billion addition. The Caribbean Banking Centres was up $11 billion, Switzerland up $7 billion, and the catch-all Other Countries up $11 billion. Witness the Balkanization of the Globalist Agenda for US debt support, in his words. The majority of world is busy abandoning the USDollar. In the last defense, the Anglo-American centric West digs its heels in.

Former Reagan Admin official Paul Craig Roberts laid out the Belgium Bulge that almost nobody in the mainstream has discussed or noticed. They are paid not to discuss or notice. The USFed is laundering USTreasury purchases to disguise the volume of QE or to hide the significant dumping by foreign entities. Since March, the Jackass has suspected concealed USFed QE volume, but evidence points more to foreign dumping of USTBonds. The USFed can effectively hide the QE volume using the ESFund and dozens of hidden channels. Some main items by Roberts are good highlight points. From November 2013 through January 2014, Belgium with a GDP of $480 billion purchased $141.2 billion of USTreasury Bonds. Not likely, not without a budget surplus. The nation boasts both a trade and current accounts in deficit. Nor can the tiny nation print money for such purchases. Roberts points the finger of suspicion at the USFed. He believes the USFed's actual bond purchases for a recent three months was $27 billion per month above the original $85 billion monthly purchase and $47 billion above the official $65 billion monthly purchase at that time. He implies the Taper Talk in an ongoing dialogue of lies.

A group of foreign nations dumped $104 billion in USTreasurys in a single week. The Belgium Bulge was not executed and cleared via the USFed's official National Book-Entry System (NBES), designed for its custodial customers. Instead, the sales were done through the EuroClear securities clearing system, which is based in Brussels Belgium. Risk rises for damage to bond market integrity. All must be managed and hidden effectively. Such a stampede would raise interest rates, collapse the US financial markets, and raise the cost of financing the USGovt debt. The system is soaking up the supply, but causing a bulge. The USFed and EuroCB disguised its purchase by laundering it through Belgium, suggesting that the USFed is concerned that the world is losing confidence in the USDollar, as Roberts sees it. The global reserve currency status is at grave risk. The Jackass is on record forecasting the growing dependence of the USGovt operations, the USGovt foreign embassy operations (increasingly used in covert operations), the USGovt deficit finance, and the USMilitary wars waged, all being dependent upon the Weimar USFed hyper monetary inflation. Robert calls it an unsustainable empire that signals the collapse of the international monetary system. See the Information Clearing House article (CLICK HERE) and the USA Watchdog interview of Roberts (CLICK HERE).

◄$$$ NEXT, A HYPOTHESIS IN JUMP SHIFT THAT SEEMS AS CREDIBLE AS DISRUPTIVE... THE BELGIUM BULGE BILLBOARD MIGHT INSTEAD SHOW POSTED USTBONDS AS COLLATERAL TO MEET A GIGANTIC MARGIN CALL FOR A GIGANTIC GOLD POSITION, POSSIBLY TO SET UP THE GIGANTIC VALUTS FOR BRICS CENTRAL BANK GOLD RESERVES... THE POSITION MIGHT BE MIXED WITH REDEMPTION DEMANDS FOR RESERVES HELD IN INTL MONETARY FUND ACCOUNTS, WHICH PLAYERS WANT DISSOLVED (IMF IS DEFUNCT)... THE BELGIUM BULGE MIGHT MEAN THAT LONDON SOURCING HAS ENDED, ALMOST ZERO GOLD. $$$

History might be repeating itself with a financial warfront Battle of the Belgium Bulge, a pincer movement to capture Western gold and form the Anti-USD Central Bank. Further parallel is the battle is against Fascism ironically. We might be seeing the birth of the BRICS Gold Central Bank, in a grand titanic struggle to source its gold for vault storage, decentralized as expected. The entire hypothesis makes great sense, ties pieces together, and reflects the struggle of forming the alternative system which ushers in the Gold Trade Standard. The King Dollar is being deposed, and the Belgium Bulge indicates the dismissal and derailing of the global reserve currency. The Belgium Bulge Billboard is posted USTreasury Bonds as collateral to meet a gigantic margin call. The players are not identified, but probably a combination team of Russia, China, India, Saudi Arabia, possibly even Iran and Japan. They might be working to preserve a gigantic gold position to set up the BRICS Central Bank for Gold reserves. The gold position is clearly a group of sovereigns (meaning nations and their finance ministers or wealth fund mgmt team). The Jackass theory is that it is the BRICS & Associates. Furthermore, the Germans will become an integral player, using ClearStream just like Belgium is using EuroClear. They will be a major linchpin for Eurasia for funding important investments. They will be a major conduit for technology transfer. These are two large clearing houses (EuroClear & ClearStream) that can be also custodial chambers. The Belgium Bulge might be evidence that the major London Gold Drain might be almost finished, replaced by Paper Gold sourcing. Therefore conclude the Belgium Bulge Billboard is a Call To Arms for the Eastern nations to fortify a gold core.

Credit goes to EuroRaj, the brilliant intrepid London bank analyst who consistently thinks outside the box, and identifies the key elements in the Paradigm Shift with insights of troop movements and supply chain caravans during the global financial war. He pieced this theory together to formulate the highly credible hypothesis. It lacks some details, as one would expect, but still indicates a mammoth shift. The King Dollar is being deposed, the Petro-Dollar shoved in the dustbin, the SWIFT bank system to be bypassed, as the BRICS nations rally support behind a gigantic gold position. Recall some numbers. The latest TIC Report cited Belgium as having added over $100 billion of USTreasury paper in January to an already outsized whopping $310 billion. Tiny Belgium's entire GDP is only one third of its supposed USTreasury holdings. To get the math straight with proper perspective, $1 billion funds roughly 25 tons of gold. So $400bn funds 1000 tons of gold, a critical mass for the BRICS central bank. The Belgium Bulge could indicate a precious pregnancy and birth soon of a 1000-ton golden baby!!!

The following is EuroRaj's rationale and logic. Put the pieces together on the USTBonds, EuroClear, and Belgium. Suppose a sovereign nation or small group of nations are working together, like Russia, China, India, Saudi, Japan. The party is heavily long some paper Gold contract or even the GLD fund shares at a price between $1300 and $1500. Since it is a big money losing trade, either collateral must be posted or else close the trade with a sizeable loss. A normal investor or a hedge fund would certainly not have the firepower in terms of ability to sit on a 10-20% loss and to maintain a position $billions underwater. Therefore, the Belgium Bulge means a big sovereign type entity is in the Game, who refuses to take losses but instead continues to post collateral with a goal toward taking Gold Delivery Another $100bn was posted in January, with more likely in the last three months, the data delayed. The risk to the London & New York & EU bank cabal, is that this large player entity demands physical gold, works toward delivery, and pays at the original $1300-1500 price on the contract, where the posted USTBond collateral is kept by the gold exchange. The remainder of the contract sale will be settled in USTreasurys, along with the bulk gold delivery. The sovereign player(s) will not be shaken. They want their gold, likely to form an initial core to the BRICS Central Bank.

More EuroRaj rationale with some conjecture. The USFed and JPMorgan agent are too skilled at concealment, which means the entity does not object to the billboard in Brussels. We might be seeing a time bomb that someone is controlling against JPMorgan. Consider a small twist to this scheme too. The sovereigns (Russia, China, India, Saudi, Japan) might have approached the Intl Monetary Fund or Bank For Intl Settlements in confrontation to demand, "Here is your SDR pledged capital, and we want the physical Gold." The IMF/BIS then in turn went to JPMorgan and demanded from them physical Gold deliver against the Special Drawing Rights. It is a basket of USDollar, Euro, JapYen, British Pound, but primarily USD. Recall that the BRICS have already announced plans to set up a Development Bank by July with $100 billion in capital. The Jackass suspects this bank is to be a hidden gold central bank. The Belgium Bulge means a group of sovereigns have made a huge physical demand, which acts like time bomb or a deterrent possibly. The USTBonds held at the EuroClear are collateral meant for a physical gold trade. See the ClearStream website article (CLICK HERE) and information (CLICK HERE).

A London-based Hat Trick Letter client with some access to deep data offered a viewpoint, valuable in interpreting USTreasurys. Call him London Paul, with over 15 years experience in The City, now a financial consultant. He needs a name because he has become a new wise (generous) colleague. He said, "Having chewed over the USTreasury figures since the Belgium Bulge started in earnest back in Nov 2013, I am seeing the possibility that Russia, China, Japan, Taiwan, and Ireland have cut deals to move USTreasury holdings to Belgium (EuroClear). There could be a combination of factors such as risk of sanctions, freezing their assets, and perhaps the inability to move dollars from international jurisdictions commencing around July. Close attention must be paid to EuroZone countries and their USTreasury holdings going forward as well as the usual suspects listed above. It is also possible that nations like India are acting as custodians which would explain their increased holding in recent months. Clearly this is a complicated issue, but the next couple of months might truly let the cat out of the bag. The complexity of USTreasury holdings and their location and also reliability of data just muddies the waters even more." So Belgium might be a repository for funds at risk, dealing with obstructions. Much appreiciation to London Paul.

The focus by the alternative media is on the buyer's identity, instead of what is the purpose of these USTBonds being held at the EuroClear in Belgium. The simple hypothesis stated in the previous story does not pass the deeper reality tests. Since JPM controls the EuroClear, a cabal entity, they could have easily hidden USFed bond purchases. So it had to have a different purpose and the size meant that it was a giant player, like a sovereign entity. Moreover, the player was explicitly telegraphing a message to those who knew how to read it. The Jackass believes the Eastern group of sovereign nations is making a global billboard statement, a Call to Arms in the Global Monetary War. They wish to formulate the critical mass required to launch a New Gold Trade Standard. They must assemble the gold reserves. A final twist. A second clearing house exists, whose presence indicates much bigger German role in Eurasian Trade Zone matters. In addition to EuroClear there is ClearStream, which is owned by Deutsche Borse. The German investment bankers are not only spearheading the internationalization of the RMB but also moving fast on it. The Chinese Yuan trade is setting up its mutually cooperative designated banks much like on the bare wild frontier. The Yuan Swap Facilities are much like frontier trading posts. It looks like Frankfurt is being set up to give some serious competition to London, as it could become the principal Western financial hub for Eurasia. The Voice directly confirmed this German development, the final twist cited by EuroRaj with a stack of projects queued up.

◄$$$ GERMANY IS BEING PREPPED TO BECOME THE FINANCIAL HUB FOR EURASIAN BENEFIT (NOT LONDON), WITH ENORMOUS RMB ACTIVITY IN THE TRADE ZONE... EXPECT THE LINCHPIN TO DEVELOP FOR INVESTMENT FUNDS AND CONDUIT FOR TECHNOLOGY, LEVERAGE USED CAPABLY IN THE RMB TRADE COMPETITION... WATCH FOR GERMANY TO TEAM UP WITH TURKEY ON GOLD MATTERS. $$$

Some final thoughts to tie it together. My guess is the contracts in trouble are for the entire BRICS Central Bank in Gold Reserves. Maybe some additional support has been given. Perhaps the BRICS & Assoc are cooperating, including Iran or Japan or even South Africa. They could be offering USTreasurys in swap agreements. The Iranians would eagerly post USTBonds, an indirect handoff that eventually is converted to Gold. Watch Frankfurt and Turkey team up to work on intermediary Gold provision for trade settlement and for BRICS central bank provision. Both Germany and Turkey are important swing states. They could work together in the intermediary gold function and fortify the financial hub role for Frankfurt to become the true London of Central Europe. Already Hong Kong is the true London of Asia. What incredible impact it would have if Germany and Turkey solidify the Gold Ramparts to the Gold Trade Standard. As footnote, the Ramstein NATO base in Germany, and the Ircirlik NATO base in Turkey, could work on the gold transfer logistics. Moving away from heroin for USMilitary distribution toward Gold bullion in Eurasian Trade Zone distribution would be a very positive progression.

The great conversion cited by the Jackass a year ago might be coming to pass, coming into view. The contract position is not in trouble, when vast USTBonds can be posted from Emerging Market savings in FX reserves. The ditch of the IMF might be also in progress, converting SDR pledges into gold contract collateral, a deft move indeed. So the BRICS nations might have decided to use the Belgium Bulge Billboard as a Call to Arms in the Gold Wars. The Jackass is a little repetitive on this point, since it is that significant and important for the Global Paradigm Shift for financial power and geopolitical power. The USD Alternative movement has a billboard for news and data, like a Hockey Game scoreboard with power plays, scores, but without the player numbers posted.

◄$$$ THE RETALIATION COULD COME WITH ATTACKS ON THE MINOR CURRENCIES, SINCE VULNERABLE... THE DOZEN NATIONS HAVE BEEN THRUST INTO THE FINANCIAL WAR, AS CONSEQUENCE FOR PUTTING SUPPORT BEING THE BRICS NATION LEADERS... COLLECTIVELY THEY CAN ACT WITH THE FORCE OF A SINGLE LARGE NATION, LIKE IN USTBONDS HELD IN ARSENAL AND OFFERED FOR BATTLE AMMUNITION. $$$

The BRICS nations are going to be attacked, with counter-offensives conducted by the bank cabal. They are on the extreme defensive, attempting to hold onto power for the monetary control room, abused widely to print themselves $billions in granted wealth. This is foremost a Global Financial War to preserve the USDollar regime. Watch the minor currencies to be whacked, like for instance the Vietnam Dong or Argentine Peso. It is both ironic and telling that their defense will be in the form of USTBonds, the ultimate usage in Indirect Exchange to replace the USDollar corrupt fiat paper regime. The conversion of USTBonds to Gold has numerous intermediate steps. The Belgium Bulge shows the step on public display in front of our noses, but it is not easy to decipher. The swing state of German is involved on the periphery. Watch the ClearStream data for suspicious large USTBond positions suddenly to appear. Frankfurt is to be the RMB trade hub center, with possible leadership over London. The Eurasian Trade Zone has begun to adopt Germany in a stealth membership by activities, rather than public announcement. Refer to projects, fundings, placements, and issuances. Gold Trade Standard is dead ahead. The USGovt will never repay the USGovt debt held in USTBond securities, never. The Eastern nations will redeem them for Gold, and do so within the system. When done by a superpower, the action will appear to be shoving USTBonds down the New York and London banker throats.

GiuseppeS from Italy (London ties) added some closing thoughts on the Belgium Bulge and its relation to the smaller nations, his thoughts with my edits for flow. The seller does not want any USDollars and the buyer does not have the full amount of Gold. A margin call is imposed in order to harvest assets and thus to fund the starting operations in July. Gold reserves for the BRICS central bank must be assembled. Later, after battles and more pillage and more frauds, the physical BRICS bank is to be established in January 2015. Focus on the BRICS & Associates. Recall the Associated 46 countries signed the CICA deals (Eurasian Trade Zone related) with agreements on the currency value of the oil deals and the devaluations of the USDollar. They have been thrust into the arena, now major players. The Associates have a major role on sustaining the positions in fortification. Expect the final cabal backlash must be directed to them from London and New York. Leading up to and at the time of the Holy Grail Russia & China Gas Deal, the United States has thrown them a curved ball and demonstrates that indeed two sides can play. The entire R&C Energy Pact has delivered a near death blow to the Petro-Dollar, but with graceful adequate warning. Look for a couple of currency revaluations to go ahead, which will disrupt China and their own plans. The Beijing leaders want the Yuan exchange rate low in its present form. Expect more currency revaluations to be unleashed, knock for knock, on a dozen currencies, as the USGovt hits back. Watch for example what is going on Vietnam and these Langley sponsored riots, over the East Asian island disputes. Watch the VNDong currency, the Thai Bhat currency, the Indian Rupee currency, all vulnerable. As footnote, the Jackass notes a Laos Military leader was just killed in a plane crash.

## PETRO-DOLLAR COFFIN NAILS

◄$$$ MANY ARE THE SIDES OF INTRIGUE FOR THE DEATH OF THE USDOLLAR... MONETARY AND MILITARY ABUSE AGGRAVATE THE GROTESQUE IMBALANCES THAT HAVE ARISEN OVER 30 YEARS... THE PRESSURE WILL BE ACUTE FOR THE USGOVT TO LAUNCH ITS DOMESTIC DOLLAR... THE GLOBAL LEADERSHIP FOR A VIABLE FINANCIAL STRUCTURAL FIX AND SOLUTION WILL COME FROM THE EAST, LED BY RUSSIA & CHINA. $$$

As insolvency spreads from the USD cancer and toxic QE bond purchase applications, the big Western banks will suffer a horrible fate. The process is well along. They will be forced to settle their derivative contracts in the midst of failure, but they are denominated in USD terms. To be sure, the USD will be forced to undergo selling pressure, from the global USTreasury Bond rejection and frequent dumpings. But the derivative demand, like seen in 2009, will be a strong wild card. The potential is present for the US-DX index to rise, then rise more, but suddenly die. The conflict will be acute with high volume, as rejection of the USTBond will occur at the same time as demand to liquidate derivatives and special hidden USD-based loans. The derivative settlements offer a strong USD demand in curious manner. In actual sequence, it is highly likely that the USDollar will split. The QE abuse by the USFed and Euro Central Bank, even the Bank of England and Bank of Japan, will force the USGovt to launch a new Scheiss Dollar. The US urgently requires its own domestic currency. The global pressures will be too great to put a halt to the abusive heretic destructive status quo. The large trade nations will force the USGovt to launch a new Scheiss Dollar, which will fall in a series of devaluations. Its fundamentals will be wretched and horrendous.

The International Dollar will continue and be somewhat stable, holding its value, unless the USFed pulls a haphazard power play. Anything is possible, like an offshoot of FATCA. The Eastern nations, led by Russia & China, followed by the BRICS Associate nations, will form a critical mass. The USGovt will be compelled to create a lowly regarded new domestic currency which will be devalued, and cause severe economic problems much like seen in Venezuela. It will claim to have a gold support, but it will be a grand lie. The viable solutions to the ongoing endless global financial crisis will come from Russian & Chinese leadership. The more the US/UK/EU stands in the way, the greater the damage to their economies, to their capital structures, and to their political prestige.

◄$$$ WILLIAM KAYE FORESEES FULL BLOWN CURRENCY WAR AND MOVEMENT AWAY FROM THE USDOLLAR GLOBALLY, WHICH WILL CAUSE SUDDEN POVERTY IN THE UNITED STATES... HIS VIEW ON THE EURO IS INTERESTING, AS HE EXPECTS IT TO RUN TO 200 VERSUS USD AND SLAM THE EUROPEAN ECONOMY. $$$

What William Kaye might not anticipate is a gold-backed Nordic Euro which could effectively stabilize the European Economy. The panic is clear, likely to cause a rush into Gold & Silver as refuge as the global currency crisis heats up with quantum jumps. The Hong Kong hedge fund manager is astute and sharp, former M&A expert for Goldman Sachs. The risk is to ignite World War III, but neither Russia or China will take the US Nazi bait. In the Jackass view, the war began on 911, having morphed immediately into a global financial war, reflected by the name of this report. The war is to protect at all costs the USDollar as global trade standard and reserve currency, even if major central banks must resort to hyper monetary inflation and gold thefts.

Kaye made many excellent points. The central banks are running on empty, both on gold account and integrity perceptions. The West is going to be impoverished when the USDollar collapses, which will supercharge the currency wars. "The reason this will supercharge the currency wars is because there is no way Europe can survive with the currency considerably stronger than it is right now. If the Euro [currency] is surging through the 1.60 level and looking like it is headed to a 2:1 level, they are going to have to print like mad in Europe. This printing will take place even if it causes the EU to reconvene and change their charter. So at that point Europe will have to print like mad just to survive, and basically every other country will have to do the same. When we get to that point where all the major nations are engaged in a full-blown currency war, particularly with the central banks in the West having very little gold left to continue their suppression scheme, this is when the price of Gold & Silver are going to skyrocket." He does not anticipate a disruptive factor in the Nordic Euro launch and German separation from the European Union, which is a distinct possibility. It might even be gold-backed if the Russians & Chinese have launched their own gold-backed currencies. Doing so requires a parade of like entries.

Kaye expects the demise of the USDollar as the world's reserve currency. This is one of the major reasons he advises investors to be positioned in physical Gold & Silver. More climax events will occur when Russia succeeds in moving away from the USDollar. However, he seems not to notice that Saudi Arabia has divorced its former Anglo master lords and kingdom designers. He talks about US pressure to keep the Petro-Dollar in place. The moves under the Chinese wing are too obvious, which paint a giant billboard of imminent news that Saudis (and possible other OPEC nations) will accept Yuan in oil payments. He sees the end of USDollar hegemony in sight, a certainty in his judgment, but with many questions on when it occurs, and when the panic will begin. See the King World News article (CLICK HERE).

◄$$$ KEYSTONE IS FINALLY A GO, WHOSE SIGNAL IS ENORMOUS BUT NOT WELL UNDERSTOOD... THE GO SIGNAL FOR KEYSTONE MEANS THE UPCOMING DEATH (IRRELEVANCE) OF THE USDOLLAR AND SHIFT OF ITS CAPTAINS... THE ROCKEFELLERS MADE A CONCESSION, DETAILS POSSIBLY TO COME LATER... THE ENTIRE ENERGY MARKET WILL BE DRIVEN BY THE EASTERN POWERS, INCLUDING IRAN, SINCE THEY ARE THE STRONG MARGINAL BUYERS... THE RESULT WILL BE THE FINAL DEATH BLOW TO THE USDOLLAR, AND HIGHER OIL PRICE PAID BY THE USECONOMY. $$$

As preface, note that the Hat Trick Letter called the Keystone Pipeline a significant indicator a year ago, tightly related to the convergence of the West Texas and Brent crude oil prices. Many months have passed. When the Obama Admin obstructed the opening of the pipeline several months ago, it was clear a hidden significance was involved. Consider some explicit thoughts by EuroRaj, which indicate a titanic struggle among two principal power centers. "Most of us understand that this will explicitly signify the end of the Petro-Dollar regime. Consider another deeper theory. The Rockefellers, who own the energy cartel within the G-7 world, had accepted the fiat regime (USD) of the Rothschilds as long as it had credibility and the USD maintained its purchasing power. The fact that the Rocks are allowing the Keystone pipeline to be built, signals that they want to sell oil & gas but in non-USD terms to the Asians [to maximize profit]. The Eastern clients will provide them with a higher price and better store of wealth than the USD. Besides the end of the Petro-dollar contract, which is the core longstanding contract between the Roths and the Saudis, the building of the Keystone represents a grand fracture between the Rocks and the Roths." Wow! So the Rockefeller dominant entity within the Seven Oil Sisters has turned its back on the USDollar. Bear in mind many comments by Russian President Putin about Kremlin desire to weaken the influence of the Rothschilds in his country. A titanic struggle is being played out.

Therefore, many follow-on conclusions might be within reach, made in a credible manner. The United States will remain a net importer of oil & gas for the foreseeable future, as nothing is going to change the equation. The price of oil & gas that the US imports has been set by the US in agreement with the marginal producer, namely the Saudis. Recall all the openly stated arguments about excess capacity in control by the Saudis. That claim has been swept away, a Jackass point steadily made. In fact, Arabs led by the Saudis have subsidized the price as long as the USTBond/USD was the reserve currency, even interchangeable with Gold, and as long as the Saudi FOREX reserves (savings account) was strong and secure. That situation has also changed, as the US-Saudi divorce is in the open, and the Saudi gold account is being stolen by London bankers.

Here comes the shift in geopolitical weight behind the table. From here onward, the price of oil & gas that the US will both import and utilize from its own reserves will be determined by the powerful marginal buyer, the Asians. The marginal buyer dictates price, and Keystone going live signals that change. The US will change from being a price setter to a price taker. The Rocks are going to sell US and Canadian oil & gas at the highest price determined by the bidders, no longer exclusively by the US/Saudi partners. The US-Saudi partnership appears exhausted obsolete and dead. The Rocks are in the business of selling their goods to the highest bidder and have no sense of loyalty, except to Money & Power & Lucifer. Expect that Keystone inauguration will significantly raise the price of oil & gas for the US population, as they will be just like any other global user. No longer will the US population be the privileged user as in the past. Their USD credit card is soon to be taken away also. The Keystone facilitates the setting of US and Canadian oil & gas price at global rates, based primarily by the marginal demand, the Asian consumer. A great rebalancing is in progress. For some background political battle information and mid-term election jostling, see the Zero Hedge article (CLICK HERE), showing Pinocchio.

The impact on the Saudis (in control of OPEC) will be like they are suddenly outside, looking in. They have been price takers for a long time, made evident by their acceptance of West Texas oil price settings within the oil world battles. Next the Saudis will simply sell oil at a price set by the global market place. The entire argument is consistent with OPEC being eclipsed by the nascent NatGas Coop led by Gazprom using Iran reinforcement. In recent Hat Trick Letter reports, the Jackass has also stated that Russia will set the price, but China would enforce payment in Yuan terms, as the Petro-Dollar faded out and the Petro-Yuan was phased in. The Keystone signals the switch, like a lever pulled. The Saudis consequently, and as a crucial consequence, will accept not just the USD but a basket of currencies. Think USD, Chinese Yuan, Russian Ruble, even possibly British Pound, Swiss Franc, and JapYen. The Saudis will become an important factor in the Chinese Yuan becoming a fully convertible currency.

Some final thoughts and musings, if not loose forecast guidelines. This summer will see some tumult. On the US side is the GO Signal given to Keystone. On the Eastern side, China & Russia signed the Gazprom contract, aka Holy Grail, whose payment structure has not been revealed but likely to include the Yuan currency swap. Look for Russia and Iran soon to accept a basket of currencies (USD, EUR, CNY, RUB) for oil & gas, in concert with Saudis. Expect the West Texas and Brent oil prices to converge, and the WTexas to become a redundant oil benchmark. Expect the US DX index to weaken over time, the USDollar dragged down by the demise of the Petro-Dollar. Finally, expect the Oil price in USD terms to rise above the $110 mark, kind of a critical line in the hot Saudi desert sand. THE KEYSTONE PIPELINE SIGNALS THE REQUIEM FOR THE USDOLLAR, ITS FUNERAL DIRGE. The Rockefellers are jumping ship from the USS Dollar, sailing for more promising Asian ports. The Keystone decision is consistent with the USDollar global reserve standard going not so quietly into the night. The Ukraine switch was also pulled. Special thanks to EuroRaj for many analytic planks and concepts, numerous email exchanges, a pet project of his for the last year watching crude oil pricing developments.

◄$$$ THE USGOVT-SPONSORED SHALE SHAM IS SLOWLY EXPOSED... THE SUPPOSEDLY GIANT MONTEREY SHALE OIL POTENTIAL WAS DOWNGRADED BY 96% OF RESERVES... RECALL THAT THE NEW USGOVT GOLD-BACKED DOLLAR IS MENTIONED AS ASSET BACKED (GOLD, OIL, NATGAS), BUT THE GAUGE READS EMPTY. $$$

The headline cited how the dream of the US energy independence was just revised away. The sham of the entire potential for US-based shale oil is being exposed. Not a single Obama Admin initiative makes any sense, has any validity, or pans out. As recently as mid-May, the much publicized Monterey formation accounted for nearly two thirds of all technically recoverable US shale oil resources. It stood as a world class 13.7 billion barrels. But in a single day with a single stroke of a pen, that estimate was downgraded to a mere 600 million barrels, or 96% lower than the previous day. The assessment took the Monterey Field from one of the world's largest potential fields to a much smaller plug. The 600 million barrels is not tiny, and certainly amounts to a sizeable pool. But it would supply the US oil needs for a mere 33 days. The shale technology is associated with huge electricity requirements, tremendous water demands, and significant environmental damage, even infrastructure alteration. It is net negative on the energy scale. The new estimate is a major blow to the nation's oil future and to projections that an oil boom. Next to be removed will be the estimated 2.8 million new jobs to California, along with boosted tax revenue by $24.6 billion annually. See the Market Watch article (CLICK HERE). The production of shale is not a US national solution, as the amateurish US President claims on his demagogue stage. The Jackass has claimed for two years that shale and gas fracking are both shams with no viable long-term potential.

◄$$$ PETRO-DOLLAR DEATH IS SIGNALED BY DETENTE AND RAPPROCHEMENT BETWEEN SAUDIS AND IRAN... THEIR PEACE MAKING WAS LIKELY ORDERED BY CHINA, AS THE ASIAN SUPERPOWER DO NOT WISH TO COME BETWEEN THE TWO FOES... UNLIKE THE UNITED STATES, CHINA REGARDS CONSTRUCTIVE TRADE TO BE A "WIN-WIN" SITUATION, WHERE THE USGOVT PURSUES DOMINANT BANKING & MILITARY TO DICTATE A "LOSE-LOSE" RELATIONSHIP... THE PUBLIC PARADE THAT FEATURED CHINESE MISSILES READ LIKE A BILLBOARD ANNOUNCING THE US-SAUDI DIVORCE. $$$

Speaking to reporters in the Saudi capital, Foreign Minister Saud al-Faisal said the desert kingdom was ready to host Iranian Foreign Minister Mohammad Javad Zarif anytime he sees fit and indicated that Riyadh is willing to open negotiations with its nemesis on the many combustible issues dividing them. Such a Gulf olive branch development would be unheard of without the constructive influence of China as the unannounced new Gulf Protector. The two nations have more in common than differences, both oil & gas powerhouse exporters, except that Saudi is quite depleted and Iran not even close to depleted. Both nations have diverse petro-chemical industries. They will spend time mending fences and working to tolerate Shiite majorities in certain nations like Bahrain. The China-Iran relationship is solid. The newcomer Saudis into the Eastern fold have been ordered to mend fences and work constructively in the big sandbox known as the MidEast. The Riyadh Royals will cease & desist with terrorist sponsorship with Langley guidance. Most importantly, the detente clearly loudly unequivocally means the Petro-Dollar is dead, and the Petro-Yuan is to be rolled out with trumpets, sabres, and headdress.

The Saudis appear to have halted their proxy wars in the Arab world, such as in Syria, Egypt, and even Lebanon. The bitter extended war in the 1980 decade with Iran resulted in over a million combined deaths, with some nerve gas usage. The two nations must overcome the harsh sentiment that followed the war. Saddam Hussein was an ugly ally to the Saudis, a Bush/Rumsfeld best buddies, pitted against the Ayatollah in Iran. Being an intolerant totalitarian regime, the Saudis worked well with the American Fascists, including their statesman Kissinger. The main war for no further Saudi participation is in Syria. Some dark destructive alliances between the Saudis, Turks, and Israelis must come to an end also, using security hitmen and other nefarious types. The end effects could reach Eastern Europe and Western Asia, where the USGovt had terrorist training camps set up with Saudi funding (see Poland).

The serious Jackass belief is that China ordered the Saudis to stop all contributions to such negative disruptive activity, and to sever ties with the Anglo-Americans. They might have been encouraged to join some Eastern financial projects, like grand USTBond dumps in approved clandestine channels. Finian Cunningham does not detect the quieting steady Chinese hand, but he offers a good pespective. He concluded, "In other words, the Saudi rulers are not approaching Iran out of any genuine conciliatory motive. They are desperately trying to limit the damage stemming from their proxy terror wars that they have fueled in Syria, Iraq, Yemen, and Lebanon. And they want Iran to somehow help them smooth this process of damage limitation." The Iranians will join, no doubt. They smell a new alliance poised against the United States, and will therefore make concessions. Tehran must deal with a modicum of hypocrisy, as Riyadh has accused Iran of fomenting violence, when it has been 70% from the House of Saudi with Langley playing a key role. See the PressTV article (CLICK HERE) and the Gulf News article (CLICK HERE).

As the Saudis take additional steps away from the US/UK protection, and distance themselves from the Petro-Dollar defacto standard, they must accept the Iran strengths in gas pipelines to be connected to Gazprom network. Watch Qatar join up with Gazprom, even in the LNG network, and cause extreme disquiet by the USGovt, which maintains a giant naval base in capital Doha. The Saudis could do well in sponsoring as investment partner the Iran-Pakistan Pipeline and the Iraqi Pipeline that will connect to Syrian ports, just to curry favor with Russia & China, and to formalize good riddance to the United States. There is no limit to the number of constructive common projects to build a more solid relationship. The Saudis have at their disposal some of the best petroleum engineering expertise in the world, next to Norway. See also the Washington Post article (CLICK HERE), the Al Jazeera article (CLICK HERE).

A final comment that cements the Saudi position in the Chinese camp, like a US divorce statement on a billboard. The Saudis displayed Chinese missiles in a public parade, signaling the end of Petro-Dollar and birth of Petro-Yuan. The ostentatious display was deliberate and went way overboard. The Saudi Military for the first time displayed Chinese made intermediate range missiles during a military parade in the kingdom at end April. The unveiling of the two Chinese DF-3 missiles is the latest sign that the kingdom is distancing itself from the United States. The missiles were shown during a large-scale military parade featuring troops, warplanes, and other military hardware as part of the Abdullah's Sword military exercise. The nuclear capable missiles were actually purchased back in 1987. Putting them on public display was to make a global message. See the Free Beacon article (CLICK HERE).

Conclude the Petro-Yuan standard is being rolled out and put in place. Witness some hard evidence that Saudis have changed partners. The new Gulf Protectorate role is by China, signaling the Yuan must soon to be announced as currency for the oil trade. Furthermore, Saudi Arabia has signed a deal for the Chinese Pterodactyl drone in another contract. Any weapon student who believes the USMilitary has total superiority in drone technology needs to recall that Iran brought down a US Drone intact a couple years ago, landing it in an airfield, commandeering its control, which was then thoroughly studied. Not surprisingly, and again a past minor Jackass forecast, the Saudis have defended an Al-Qaeda attack. They foiled a terrorist plot, likely done in vengeance by Langley. Some dastardly final maneuvers done in desperation, the directed Al-CIA-da (label frequently seen in alternative press, not my own creation) targeting of easy Saudi targets. See the Want China Times article (CLICK HERE) and the Zero Hedge article (CLICK HERE).

## SWING STATES & CRITICAL MASS

◄$$$ THE CONCEPT OF CRITICAL MASS WILL SOON GAIN TRACTION IN THE FINANCIAL PRESS... THE WESTERN MEDIA WILL CLAIM THE EASTERN STRATEGY TO RETURN TO THE GOLD STANDARD CANNOT SUCCEED, SINCE IT REQUIRES EXTENSIVE GLOBAL SUPPORT... THE BRICS & ASSOCIATE NATIONS ARE ASSEMBLING THE REQUISITE CRITICAL MASS... THE OTHER NON-PLAYERS WILL BE STUCK IN TOXIC GROUND, WITH GREAT RISK TO SLIP INTO THE THIRD WORLD... IT WILL BE FULL OF INTRIGUE TO WATCH THE BRITISH. WHICH REALLY NEEDS TO BE REBUILT FROM THE GROUND UP. $$$

A quick item on critical mass. If one or two nations (A & B) launch a strong viable asset backed currency with integrity, having the structure in place to make payments in trade, then those one or two nations would be susceptible and vulnerable to a sudden shock. They would be victims of their own success. The new currency would rise sharply in exchange rate versus the smorgasbord of bogus currencies founded in fiat paper, as in the current regime of USDollar, British Pound, Euro, Swiss Franc, Japanese Yen, and SKorean Won. If only one or two nations launch a gold-backed new currency, it would quickly rise 30% or maybe 50%. The result would be that A & B nations would suffer a quick slam in their export trade, since the currency rise would quickly price them out of the global market. Their cameras or construction equipment or cars or petro-chemicals or machine tools would suddenly be so expensive for their client states, that the A & B trade would suffer big damage. The two nations would be victims of their own successful currency. So they hesitate and build their ranks.

However, suppose A & B nations develop the currency, support its backing with warehouses full of gold, or in the case of Panama copper too, or in the case of Norway crude oil. Then A & B nations wait to develop support in trade and financial structures, as in the so-called wiring between the currency and commodity markets. Instead of launching prematurely their gold-backed currency, they formulate a Trade Zone and frame a growing alliance, in order to assure a critical mass that includes on the order of at least 50% of global trade. Then later, when the moment is right, when the system is truly ready, when the crisis in the West reaches a critical matter point, the two lead nations A & B launch the new gold-backed currency, announce the new trade settlement system, make known the new banking procedures, and do so with an ARMADA of nations which collectively support the new structures that had been under development.

The strong critical mass of over 50% would assure that lost trade with the minority of nations would not be crippling. The lost trade to the minority non-participants to the alliance would be small, when compared to the pain inflicted on those non-participating nations. Those older industrialized nations who would not be aligned, they would suffer huge price inflation since their currencies would not compete well. In fact, they would not compete at all. Their faulty basis currencies would collapse, and so would their financial and capital structures. No fiat paper currency can compete with a gold-backed currency. No nation can survive the toxicity of a fiat paper currency in its body economic, when gold-backed economies are in operation.

The protection from a too successful currency launch is critical mass of the new adopters. The armada of newly compliant nations in the sound gold-backed currency would stand in contrast to the armada of black swans floating in the sea of toxic liquidity as tributaries to the USDollar regime and vast pools of extended fiat paper currency. The swing states will assure the urgent requirement of critical mass in new adopters. Let it be known A=Russia, B=China, and ARMADA = G20 & BRICS & SCO. The Russia-China Alliance has power, industry, capital, commodity resources, leadership, momentum, and purpose. Watch the meter rise well past the important 50% level, to signal critical mass from the BRICS core nations and the legion of associate nations signing up at their flanks. The intrigue will be in watching the British, the traditional hidden fascists with low level of resources. They will wish to be included, with a handed role in Dim Sum Bond trade shared with the Germans. The Germans have the edge with linked industry, while the London bankers have the edge in size. But they are distrusted. The Germans are both trusted by the Russians & Chinese, and have an extensive recent history of mutually beneficial trade. Therefore, Germany will be given the opportunity to build partnership with the Eurasian Trade Zone, while Britain will simply be exploited by the R&C team.

◄$$$ SWING STATES OF GERMANY, TURKEY, SAUDI WILL ALL SOON TILT EASTWARD... THE CHOICE WILL BE RUIN OR PROGRESS, PATCHING UP TOXIC SYSTEMS OR LAUNCHING NEW SYSTEMS... THE DECISIONS HAVE ALREADY BEEN MADE AT ALL THREE IMPORTANT SWING STATES... THEY WILL JOIN THE EURASIAN TRADE ZONE... THE US, UK, AND OLD LOYAL NATIONS WILL SUFFER A COMMERCIAL AND ECONOMIC VACUUM FROM THE DEATH OF THE USDOLLAR AND DEMISE OF THE PETRO-DOLLAR. $$$

The swing states once more figure in the chess board strategy. The Jackass believes Germany, Turkey, Ukraine, and Saudi Arabia will all make critical shifts and flips to the Eastern Alliance. The result will be the completion of the Paradigm Shift toward Eastern domination on matters of trade, matters of banking, and matters of currency (i.e. Gold). While the major Western nations are trapped in ugly crippling debt, mired in obscene bank insolvency, strapped to huge federal deficits, they have resorted to hyper monetary inflation on the financial front and warmongering on the commercial front. Instead of leading with corporate conference tables, the West leads with coup d'etat and permits corporate banners to march behind the smokescreen of violent war. These are surly end days for the Western prestige, as adoption of Fascist Business Model comes to full fruition, the fruits being death to collaterals (civilians), tainted profits, stolen funds, abrogated treaties, puppet regimes, and the new element since Halliburton began their handiwork. Contamination by fracking is the new strategy, so visible in the Gulf of Mexico and recently visible in thousands of water tables across the United States.

Wherever the Obama shift of weight occurs, whether shale oil or gas hydraulic fracking or obstructing the Keystone Pipeline or adoption of green energy, the outcome is tainted badly with deep fraud and hastily covered up. Since the lead movement is not made with corporate conference tables, the swing states are motivated to take action and redirect their devoted energy, if not affiliation and loyalty. The swing states will ride the commercial waves. What comes next will be crucial to tip the balance of power and the alliances. The East is gathering the all important critical mass. It will be full of intrigue and interest, as to which swing state will flip first. The Jackass bet is Saudi first. The Ukraine weather vane will be much more difficult to observe within the din of war, or at least extreme conflict and strains.

Germany is critical, and it will flip eastward, putting its tremendous industrial weight and engineering expertise for Eastern development high gear purposes, the event to be heard around the world as Europe's core turns East. It must decide to abandon the sinking West, or else sink with it. The nation has a notable recent history in commercial ties with Russia, seen in heavy rail, LNG gas facilities, diesel engines, machine tools, chemicals, and natgas routes. Over 90% of corporate heads in Germany favor stronger Russian ties. The nation has an established sordid history in the heavy devotion of German bankers toward the Anglo-American crew of fascist bankers. The legal corridor forced upon Deutsche Bank signals an end to the Western banker team role, as DBank has adopted more of a crowbar role to pry apart the London banker schemes. See LIBOR, and see the Gold Fix. It would seem that decisions have been made on the departure of Merkel, who has not conformed to the Paradigm Shift, still loyal to the bankrupt and corrupted Western bankers. The date of her exit has not been set. When Germany flips, it will make enormous decisions and put its weight behind the Eastern initiatives directed by the G-20 nations, the BRICS and their Associate nations, as well as the community of Shanghai Coop nations. The initiative is the trade payment system in fully convertible Chinese Yuan, followed later by trade payments made in gold itself.

The implicit nature of the gold-backing will be manifested in net gold payments in trade settlement. When Germany flips, all of Western Europe will face a tough decision to follow. They will observe the vast array of financial and corporate deals made with Russia & China, mostly in Frankfurt. They will notice the growing Frankfurt hub, which will rival London for prestige, and later in volume. The German flip will help to define the Eurasian Trade Zone. Those European nations who do not follow will face the prospect of entering the De-Industrialized Western Third World, whose architects are the United States and United Kingdom. Many will opt to swing East while continuing to curry favor to Western leaders in order to avoid the US/UK victim outcome, even their terror wrath.

Turkey is critical, and it will flip eastward, the event to confirm the bridge nation as finding more potential with Eastern clients, and easily exploiting its intermediary gold provider role while enjoying the toll taking ferryman post as usual. It has a knack for standing with one foot in the western pond and one foot in the eastern pond. The nation has a notable recent history in commercial ties with the entire Arab and Moslem world that spans more than just the Middle East. Turkey always has served as the hub between the East and West, symbolized by the Bosporus Straits for shipping passage. The nation has an established sordid history in the heavy devotion toward NATO bases, which means ample heroin traffic to connect Afghan supply to Western Europe users. The other extremely important role served by Turkey over thousands of years is in gold intermediary in banking. The role has been crystal clear in the Iran sanction workarounds, where India paid for Iranian oil & gas with Turkish gold, bought as intermediary. They easily side-stepped the amateurish USGovt rules set up by Obama's rookies. When Turkey flips, it will make enormous decisions and put its weight behind the Eastern initiatives directed by the G-20 nations, the BRICS and their Associate nations, as well as the community of Shanghai Coop nations. The initiative is the trade payment system in fully convertible Chinese Yuan, followed later by trade payments made in gold itself.

Ukraine is critical, and it will flip eastward, or else all its neighbors will who witness their neighbor's horrow show, while the warzone nation itself is steeped in chaos, mired in quicksand, stuck in insolvency, and pillaged by the Western firms. A trip was set. The nation has a notable recent history in fraudulent banking, having served ably in the Nigerian online fraud schemes, numerous hacking schemes, and every conceivable type of scummy operation, including white woman sex trafficking. It is a lawless land. The nation has served as a transit point for Russian natgas pipelines heading to Eastern Europe, from which points the pipelines continue to Western Europe and the big energy market. The nation has been the object of recent shadowy pursuits, marked by its awkward prompted NATO application and flimsy obscure Budapest Memorandum. To say Ukraine has always sought a NATO alliance would stretch the imagination to the limits. The nation possesses some of the richest farmland in the world, rivaling the US state of Iowa (my father's birthplace). The hope of developing the gas fields of Ukraine seems another lofty big-eyed silly hope. Like with the Ohio and Western Pennsylvania region, the fracking potential for gas production is a story with duration of two years, at most three years. The Ohio/WPa story is already over, shortly after it just began.

The Ukraine trap was laid by Putin, pulling out his support suddenly. The West under the US Black Ops under Langley control, in league with the NATO mercenaries allied with Soros control, swooped into the trap. All the Eastern nations are observing with keen eye the removal of Ukraine central bank gold to New York bank location, the absconding of Ukraine Govt funds to Swiss bank location. The Eastern nations are also observing the rape and pillage of the nation, from fields to cities, with empty store shelves and higher natgas prices the heavy cost. The Russian response has largely been to make firm their control of the Crimean naval port, and to manage the Gazprom business under stress. When Ukraine and its neighbors flip, it will make enormous decisions and put its weight behind the Eastern initiatives directed by the G-20 nations, the BRICS and their Associate nations, as well as the community of Shanghai Coop nations. The initiative is the trade payment system in fully convertible Chinese Yuan, followed later by trade payments made in gold itself.

Saudi Arabia is critical, and it will flip eastward, but actually it already has crawled under the Chinese wing, the divorce with the Anglos final, the dirge music starting up for the Petro-Dollar funeral and for the hullabulloo linked to the Petro-Yuan birth. The nation has a notable recent history in serving as the linchpin of the Petro-Dollar itself, leading the ragtag OPEC nations. The British created the nation from a bedouin desert into a kingdom, with a stroke of a pen. The big lie maintained for ten years is the excess capacity of Saudi oil output. There is no excess capacity, as the nation is heavily depleted. The Ghawar field has over a 90% water cut. The Saudi oil story can no longer support the Petro-Dollar weight. The nation struggles to reform on economic welfare and cultural reform, with progress on the former and rigidity on the latter. The Chinese have entered the tent. Huge projects are well along like the vast petro-chemical facility in the west by the Red Sea. More huge projects are planned. The recent Chinese missile deal, complete with parade, should serve as clear indicator of the next chapter. The Chinese will operate the new protectorate role. Thus expect more Chinese naval vessels patrolling the Gulf waters. The Chinese have already captured the commercial fronts, not so much with big energy projects, but with instead the archipelago of retail centers and distribution points. With the UAE and Saudi, the Gulf region was conquered years ago.

Enter Iran, often mentioned by the Jackass in the context of the Paradigm Shift eastward. The OPEC oil cartel under Saudi guidance will be replaced by the NatGas Coop under Russian guidance but also Iranian field management under MidEast commission. Given that the Saudis are largely depleted in oil, and do not conform to the Moslem Brotherhood movement (politics aside), the Saudis are suddenly expendable. Given that the USDollar has an insolvent foundation and the Saudi gold has been ripped from its London moorings, the Saudis are suddenly expendable. Given that the Iranians have two big allies in Russia and China, kept under their wings during the entire painful sanctions period, the Iranians are to be thrust into the room as viable players. The Saudis are expendable to the West, but play an important role to the East in killing the Petro-Dollar, then blessing the baptism to the Petro-Yuan in Beijing and Moscow.

The phony nuclear charges against Iran are to be whisked away, by the new global diplomat China. The Iran nuclear program will be managed more carefully. The critical Iran gas pipelines will continue, even if stuttered. Suddenly the Saudis are expendable. Watch with amazement how the Western press will vilify the Saudis, while painting a picture of Iran having been reformed and cleaned up. The Chinese are making great strides as the new global diplomat, forcing a rapproachment between Riyadh and Tehran. The Beijing leaders have dictated that the Iran conflict with the US/UK be brought to an end. Find a way, those are the marching orders. Lastly, notice the new Saudi Royal succession announced.

With new deputy Crown Prince Muqrin bin Abdulaziz, the families are aligned away from the Anglo-American tent. The shift is a death warrant to the Anglo-Saudi kinship. King Fahd and King Abdullah have done a masterful job in maintaining a difficult balance among the many tribes within their kingdom. However, a new royal line is very clear. Watch the US/UK devious tagteam throw the Saudis under the bus. When the Saudis flip, they will make enormous decisions and put their weight behind the Eastern initiatives directed by the G-20 nations, the BRICS and their Associate nations, as well as the community of Shanghai Coop nations. The initiative is the trade payment system in fully convertible Chinese Yuan, followed later by trade payments made in gold itself.

When the swing states flip eastward, and follow the direction of the New Paradigm, no trumpets will be heard, and no oversized signposts or billboards will signal the altered trade routes and banking passageways. Instead, the usual fare of military defense of the USDollar will be heard, along with a chorus of charges that certain nations are terrorists. The tune is tired and vastly overused. There will form an incredibly powerful vacuum in the West, made from the decline of the USDollar and the imminent USGovt debt default, first forecast in late 2008. Nations which desire to step off the USD regime have every right to attempt to operate on an honest trade payment system and sound monetary system. To avoid a toxic platform where thugs stand at the gates demanding tariffs, making arbitrary decisions on terrorist qualification, seems prudent and constructive. The problem centers come in the majority from the Western offices, the Western platforms, and the Western system. The major Western nations have transformed into fascist states. They must snap out of it, but ridding the cancer is extraordinarily difficult.

## GOLD IN GLOBAL PURSUIT

◄$$$ THE TIMING FOR DEVOTING EXTENSIVE GOLD RESERVES HELD BY RUSSIA & CHINA TOWARD A LAUNCH OF GOLD-BACKED CURRENCIES IS LIKE HUNTING DEER... THE TIMING IS NOT DICTATED, BUT RATHER THE OPPORTUNITY PRESENTED... PETRO CURRENCIES AND GOLD CURRENCIES ARE COMING IN PROGRESSION... EXPECT THE INTL MONETARY FUND TO BE A RUCKUS IN THE BASEMENT, WITH NOTHING TANGIBLE, NOTHING SUPPORTED, NOTHING WITH TRACTION. $$$

The question posed once again to The Voice was about whether Russia & China each possessed tremendous tonnage of gold reserves. Refer to each nation in that volume of gold reserves, not together. The man should know, since he has brokered many gold purchases for the Chinese in Shanghai and Hong Kong. He has seen the Kremlin vaults personally, where gold was long ago accumulated, with incremental additions in recent years. When directly asked by a Jackass colleague if Russia & China were truly in possession of over 20,000 tons of gold reserves, he answered confidently and unequivocally. "Russia's gold reserves are considerably higher, probably nearly double that amount." The discussion then turned to timing of gold-backed Ruble & Yuan currency introduction, expected to be launched by the Kremlin and Beijing. The timing is uncertain, and depends upon events as the flow in the increasingly uncertain sequence of dangerous events, especially coming out of Ukraine. Planning is critically important, as conditions must be aligned and plans made precise, but within the contexts of ongoing events.

The Voice responded, saying "There is no fixed point in time. Almost all systems are ready. They await the circumstances being right to roll this out. It is like hunting. You do not leave home and say at 712am, I shall shoot a six-point deer. You just go to your high stand in the tree, where you expect the six-point natural specimen to show up. Then you sit tight and wait for the right one to pass your way within sight. You must wait for the deer to show up to bag. Time is irrelevant when you go hunting." How true! My friend HankA in West Boston suburbs made the same point many times, with two buck heads mounted in his living room, one an 8-point deer he bagged on his own large forested lot. He had about 40-50 outings at 5am with nothing to show, seven years passed, then suddenly Big Boy as he still calls it. The mount is his pride & joy, not his children (just kidding).

Extreme caution must be used when introducing the gold-backed Ruble or Yuan, likely both simultaneously are in rapid succession. Doing so will require a critical mass of other nations doing the same, such as the Gulf Dinar, Panama Balboa (aka Central American Dollar), Nordic Euro, Norway Krone. If the critical mass of gold backers in currency registered at over 50%, then they thrive. But they will slam the other national economies in a sudden death blow. No nation can compete with a valid currency, by continuing their unsound toxic fiat paper currency. If the critical mass is not prepared and without majority, they kill themselves with an overly successful currency. They would tend to price themselves out of the export market. These are very dangerous times in the global monetary war.

The threat of Petro-Ruble or Petro-Yuan or both, magnified ten-fold by gold-backed currencies, or an announced progression from petro currency to gold currency, will turn the global financial system upside down. The threat of nuke hits (including false flags) is running high. Patience is a virtue, but the US/UK Fascists are exploiting the time factor in continued wealth grants to themselves, along with national gold raids (see Libya, Syria, Ukraine). My instinct says the IMFund will be nowhere in this reform game. Their potential super sovereign SDR with Ruble, Yuan, Gold, Silver will go nowhere, since no nations will stand behind it. No nations will offer Gold bullion to the IMF, period, punto, since greatly resented and greatly distrusted. The BRICS have a much bigger better plan, one to trump the IMF reformed basket with a quantum leap. Besides, the US is not behind the IMF reformed currency basket. The USGovt did not even pay its IMF bill, a strong signal that the IMF is dead. The IMF will flounder and flail and become an irrelevance, even if it continues as a bank elite conduit. The IMF account is empty, dead broke. The Ukraine bailout used the IMF as a proxy for global show, nothing more, easily noted. The IMF is a rusty tool tossed into a basement corner.

◄$$$ UNITED STATES EXPORTED 128 METRIC TONS OF GOLD IN JANUARY & FEBRUARY 2014... THE MAIN DESTINATION WAS HONG KONG AGAIN... THE NATIONAL GOLD SUPPLY DEFICIT INCREASES. $$$

SRSrocco Report is excellent and full of great analysis. The following is taken from his recent work, another exposure of gold being vacated. Not only did the United States export 128 metric tons of gold in the first two months of the year, its supply deficit continues to increase. The gold exports to Hong Kong remain strong, but were down slightly from January. Switzerland imported another 28 metric tons of gold during the month, more than twice the 12 metric tons it imported in January. Check out the chart below to see where the United States exported its gold. Assume the majority of gold heading to Switzerland is being refined, then shipped off to Hong Kong and the East.

Rocco calculates that 80% of Swiss gold imported from the US is refined and shipped to the East. Therefore 113 tons of US gold exports during January and February made their way to Asia, India, and the Middle East, offset by 15 tons imported by Western countries. The West continues to print money and fabricate derivatives, while the East acquires gold hand in great volumes. Furthermore, the US Gold supply deficit increased to 40 metric tons during the first two months of the year. Even though the United States is the #4 gold producer in the world, no priority exists to hold its precious metal within the borders. During the first two months of the year, the US imported 48.1 tons of gold, had a mine supply of 39.4 tons, and exported a whopping 128 tons for a net supply deficit of 40.5 tons. His figures do not include US gold scrap supply or domestic consumption like for jewelry. Using the USGS scrap data, estimated January & February scrap supply would be around 30 metric tons, still leaving a 10 ton supply deficit. Conclude that financial institutions or exchanges coughed up 40 metric tons of gold to compensate for the supply deficit. A tragedy unfolds, as the US engineers artificially low gold price while exporting its gold, a vast wealth depletion. See the SRS Rocco report article (CLICK HERE).

◄$$$ USMINT SILVER COIN SALES HAVE GONE BALLISTIC... THE MAY SILVER COIN SALES ARE ON TRACK TO REACH AN ALL-TIME RECORD LEVEL... USMINT SELLS MORE SILVER EAGLES (VOLUME) IN A WEEK THAN GOLD EAGLES OVER PAST THREE YEARS... CANADIAN SILVER MAPLE LEAF COIN SALES HAS SHATTERED ALL RECORDS IN COMPLEMENTARY FASHION. $$$

Another excellent SRS Rocco article, only important details shown. The USMint just updated their Silver Eagle sales figures for May, and it showed a gigantic rise. Another big single week was just registered. The partial for the month of May is already at 3,262,000 oz, not quite mid-month. Double it to project a rough 6.5 moz record month in May. The April total will be easily surpassed, beating the record set in March at 5,354,000 oz. Put the monstrous demand in perspective. It took one week for the USMint to sell more Silver Eagles (1,939,500 oz) than all the Gold Eagles sold in 2012, 2013 and 2014 combined (1,808,000 oz). The market purchased more Silver Eagles in one week than all the Gold Eagles since January 2012. The public is currently buying 100 times more Silver Eagles than Gold Eagles. Rocco has more information on industrial demand. Investment demand will probably be the leading driver of the silver market due to USDollar debasement, USTreasury Bond global rejection, and insolvent banking systems. See the SRS Rocco article (CLICK HERE).

MONTH

Silver Eagles oz sold

January 2014

4,775,000

February

3,750,000

March

5,354,000

April

3,569,000

May (thru 13th)

3,262,000

While American Silver Eagle sales and growth were impressive in 2013, Canadian Silver Maples outperformed the competition by a wide margin. Consider a global perspective. The total sales of US Eagles and Canadian Maples in year 2013, equal to 70.9 million ounces silver, represented 9% of total world silver mine supply. Compare the portion to only 2% (13.4 moz) in 2007. Those critics who claim that coin investment demand is not an important factor are errant to the extreme. The drain of supply is staggering and hits precisely where the official channels cannot afford to divert from the controlled corrupted exchanges. The common factor in all super bull runs is strong coin and investment demand. The North American coin demand in silver mint output is greater than North American combined mine output, and thus contributes to the deficit. Note that Steve (SRS Rocco) pointed out in an earlier report, this huge demand by the public for coins is accounted for as fabrication demand rather than investment demand in official ledgers, in order to conceal the factor. See the SRS Rocco article (CLICK HERE).

◄$$$ CREDIT SUISSE TRIALS & TRIBULATIONS, WITH A FORMAL ADMISSION OF GUILT IN AIDING CLIENT TAX EVASION... A FORCED MERGER WITH UBS COULD BE IN THE MAKING, TO ENABLE BETTER DERIVATIVE CONTROLS AND TO EXECUTE A HIDDEN RAID OF SAUDI GOLD ACCOUNTS... LAST DITCH OF BIG BANK LASHING FOR STABILITY... A REPEAT STORY IS UNFOLDING WITH BNP PARIBAS, BUT FOR SANCTIONS VIOLATIONS OVER IRAN AND SUDAN... LOOK FOR A SOC-GEN MERGER. $$$

Credit Suisse is in the cross-hairs. The major Swiss (but US-owned) bank, will pay about $2.5 billion in penalties and fines. The admitted harboring US tax evaders in a huge number of client accounts. The key element to the story is the USGovt is trying to force Admission of Guilt, a legal confession which opens certain doors. The Credit Suisse and other bank pressures can be seen as concerted efforts to force mergers into larger firms that are more controllable, amenable, and useful in tactical exercises. Next will come a company liquidation or forced merger, probably with UBS. The favorite tactic by US & London is to conduct mergers, the dirty laundry kept in the basement lockers, but more importantly significant raids on assets will be made possible. The tax probe will end, with CS executives caving in to all demands inflicted on them. The USGovt pressure in the ongoing case has been intense. The CS asset base has some valuable items.

An insider Swiss bank source indicated that many potential angles must be viewed. If a merger with UBS is engineered, the joint firm would become far more manageable to the USGovt will. They would be free to roam inside the CS asset base, believed to contain significant Arab Gold Accounts, and also other Ukraine gold reserves and official funds on account, not already stolen by the USGovt mercenary outfit in mid-March. The USGovt is seeking all channels to steal gold. Another motive might be to put Credit Suisse under UBS control in order to prevent any CS failure. No large bank within the Western syndicate will be permitted to fail, since the derivative chain reaction would knock them all down in a daisy chain. Know clearly that UBS back in 2011 and 2012 had been stripped of all its gold. For more dirt in the Credit Suisse ongoing battle and saga, do research on the Inside Parade Platz website in the German language. Apparently a large growing group of angry disgruntled ex-CS bankers post information there. They are being denied jobless benefits by the Swiss Govt.

Executive Officer Brady Dougan and Chairman Urs Rohner will both likely resign their posts. Dougan is the first American to serve as sole CEO of Credit Suisse. He is a 24-year veteran of the firm, having become CEO in May 2007 after heading the company's investment bank. Rohner is a former general counsel at Credit Suisse, and became non-executive chairman three years ago. Under terms of the agreement, Credit Suisse's parent company would plead guilty to a conspiracy charge in federal court in Virginia. It is akin to a corporate death sentence. Seven of the same bank's executives were indicted in 2011 in the same court. The guilty plea by a big bank would be the first since Credit Lyonnais in 2004. Credit Suisse has reiterated its commitment to the commodities business in a vacant gesture, as rivals follow its model, in contrast to other Wall Street banks exiting the business under regulatory pressure. See the Market Watch article (CLICK HERE) and the Bloomberg article (CLICK HERE) and the Reuters article (CLICK HERE). The USGovt is setting itself up for a massive retaliation response for criminal banker conduct, headed by foreign prosecutors and regulatory bodies. The response could be hastened by further action to raid assets that becomes widely discovered.

The USGovt legal sledge hammer is being applied also to BNP Paribas, with a possible similar motive involved. As they did with Credit Suisse, US prosecutors are seeking a guilty plea from BNP. They are being ordered to pay a $3.5 billion fine, but the amount might rise to $5bn. The USGovt authorities are conducting a probe into alleged violations of US sanctions related to activity with Iran and Sudan. The outcome could result in the bank losing its right to do business in the United States. If BNP Paribas is severely whacked, another merger might be urged in order to facilitate more efficient effective raids on their assets. Look to Societe Generale, since its parent firm is also located in France. SocGen is part of the bank cabal group which does gold suppression gaming and derivative balancing acts. One must look at two other angles in the tactical attacks. First, governments are looting the public via conduits like banks, after making rules and declaring violations. Second, since the looting amounts to little more than executive bonus (kitchen) money for the banking industry which controls the USGovt, the true deeper motive must be more significant in the systemic grand scheme. The Jackass believes the motive is to join the big banks, control their fragile derivative positions, and raid their client accounts. See the Bloomberg article (CLICK HERE).

◄$$$ SWISS PARLIAMENT REJECTED THE 20% GOLD RULE, BUT REFERENDUM WILL DECIDE... THE NATION HAS RECOMMENDED TO THE PUBLIC A NEGATIVE VOTE IN A RULE TO FORCE MORE GOLD RESERVES OWNERSHIP, ALL LOCATED ON SWISS GROUND. $$$

Members of the Swiss Parliament urged rejection of a popular initiative that would curtail the Swiss National Bank (SNB) independence. The proposal would require the central bank to hold a fixed portion of its assets in gold. The Parliament's lower house voted 129 to 20 with 25 abstentions in the first week of May against the plan, which demands that at least 20 percent of the central bank assets be held as gold reserves. The strict rule would forbid the sale of any gold holdings and further require all SNB gold be located in Switzerland. No date for a national vote has yet been set. The Swiss Govt long ago registered its opposition to the initiative, claiming it would interfere with the SNB's ability to conduct monetary policy. More like expose their collusion with US and London bankers in corrupt gold market practices. The balance sheet of the SNB, reported as 1040 tons of gold from end March, likely to be a grand lie. Frequent market interventions have occurred since September 2011, when the SNB began defense of the 120 cap of the Euro to SWFranc exchange rates, commonly called the 120 Euro Peg. The SNB held FOREX reserves of SWF 438.4 billion (=US$500 bn) in April, a massive sum equal to about three quarters of the country's annual economic output.

Interpretation of events is critical. Actions have wrought reactions. The Gold reserves that the Swiss Natl Bank claims to hold on behalf of the Swiss people are largely gone. Swiss gold that was utilized to suppress and manipulate price away from the all-time highs of September 2011. The Swiss National Bank is probably close to fully depleted of gold reserves, long ago used to defend fiat paper currency regime. Therefore they wish to keep the depletion secret. Huge tracts of Swiss gold were leased to bullion banks throughout 2012 and the first half of 2013. Physical demand only increased, so that remaining Swiss gold has now been delivered to China and points East. Amazingly, and with no credibility, the SNB still shows this leased gold on their balances sheet as an asset. More recently, the SNB drained its gold while defending the 120 Euro currency peg since instituted in 2011. The SNB could not survive a formal audit. A vast amount of central bank gold was dumped on the market. The nation is convulsing on the gold issue. Class action lawsuits have been in progress. London has been entreating the Swiss to supply them gold, probably to avoid courts and murder hits. A vast amount of Swiss Gold could be stored with the Bank of Intl Settlements, kept out of harm's way, away from prying eyes.

The public initiative requires that 100,000 signatures be collected, the directive following the refusal by Parliament to back the measure. Consider it a public override procedure, more real democracy at work than in other major nations. The desire is to give the Swiss Franc a credible backbone, as much as to expose past corrupt banking practices. The campaign to 'Save Our Swiss Gold' is alive and well. The big test comes. SNB President Thomas Jordan took the unprecedented step of making a public statement last year when he urged rejection of the initiative. He claims the rule would crimp the Zurich-based institution's independence and force it into large scale purchases to meet the required 20% threshold. He essential admitted the SNBank did not have the gold. In inventory data as of April 2013, more than 70% of the SNB gold was in Switzerland, with about 20% located at the Bank of England, and 10% at the Bank of Canada. One must ask why any is in Canada, except to supply the COMEX corrupt scheme or to support the popular coin mint business amidst dire shortage. See the MineWeb article (CLICK HERE).

◄$$$ THE SWISS FRANC IS NEXT IN LINE FOR A POWERFUL UPLEG... EXPECT THE SWISS TO HAVE AN ENTRY IN THE GOLD-BACKED CURRENCY PARADE... USGOVT SPOOKS LOVE THE SWISSY, SO THEY KNOW SOMETHING. $$$

The 120 Euro-SWFranc peg has been maintained by brute force for over 2-1/2 years. The Swiss National Bank relies upon heavy Euro purchases with a resulting stockpile of worthless Euros on FOREX account. They have been involved in profound gold dumping to sustain the fiat paper currency regime, in gold leasing to London to enable satisfaction of old contract abuses, in gold sales to Asian sources to keep the system stable. The Swiss nation has been betrayed, both bank clients and native savers. No doubt in my mind the SNBank dumps include a huge amount of private bullion bank gold improperly taken, having been replaced with certificates in shoddy style. A shock wave is coming to lift the SWFranc by 20% to 30% versus the USDollar and Euro in snapback reaction. The Boyz of Langley foresee the move. That is why they have those many mansions filled with SWF shrink-wrapped bills, loaded on countless palettes.

Many people wonder if the Swiss Govt has a critical mass of Gold reserves to offer a new gold-backed Franc, for competition and inclusion in the parade of gold-backed currencies. The Jackass belief is the SNBank has some gold, reduced to be sure, the hoard locked away in Basel at the BIS, but they will be able to replenish their gold account with the aid of the Bank For Intl Settlements. The cost will be dear, and force a maintained scummy relationship among bankers in the Swiss hills. To be sure, many BIS gold bars have Czech, Hungarian, and Polish markings, from where they were stolen in the 1940 decade during World War II. War serves these bankers many purposes, as nothing has changed.

In the Money War Report was detailed a story on German TV about leaving the Euro Monetary Union, loaded with conflict. Another controversial story has hit the German TV circuits. No longer are sacred taboo topics kept off the air, as times are changing. The topic is Gold price manipulative and deep market corruption. The motive is clearly to maintain support for a baseless fiat paper currency system. The bullion banks are about to be un-masked. They have sold client account gold, in Central Europe and in Switzerland in particular. They have sold it illegally, in what should be called grand larceny and tremendous thefts, deserving of long prison time. These bullion banks have been cornered by some tough regulators operating who patrol Germany. There are no escape routes possible for these bankster criminals. Floated rumors have it that The Voice and other angry cohorts have sent the regulators a parcel chock full of overwhelming evidence on criminal activities the banks are involved in. One should bear in mind, Germany is not London, nor is it New York. In 2012, The Voice signaled that Deutsche Bank would be taken down, prosecuted, and likely broken up, but in the process the German regulators and Interpol Serious Fraud Division would attack the London banking sector for their gigantic crimes. It is happening. Germany holds the crowbar. Where a bank cannot be charged with a grand felony fraud, it can instead be pressured to be shut down. See the YouTube video (CLICK HERE).

◄$$$ MAINSTREAM PROPAGANDA AGAINST SILVER CONTINUES... EXPECT THE GAINS IN SILVER PRICE TO BE 3X THOSE OF GOLD IN THE NEXT CHAPTER... HUGE DEFICITS EXIST IN SILVER, AND CENTRAL BANKS OWN NONE... INVESTMENT DEMAND FOR SILVER HAS BEEN ON A POWERFUL UPWARD TRAJECTORY FOR SEVERAL YEARS. $$$

The chatter has been consistent over the last few years. The annual chronic silver deficit has been covered by Vatican and Indian sources. The former is a bank syndicate dark chamber of Satanic variety, a hidden Mafia extension, laden with Black Nobility. The latter simply wishes to win favors and avoid nefarious hidden attacks. The Supply & Demand arguments for Silver over Gold are compelling, but the mainstream financial skewed press does not see it that way. Silver is the weakest link, not gold. Global industry needs a trifle gold as input. But industry requires a colossal amount of silver in applications that are not replaceable. Global central banks own staggering tonnage in gold but no silver at all. End of that easy argument. Mine output for Silver runs at 11:1 ratio versus Gold, a good indication of a lower bound on the Gold/Price ratio. Furthermore, the adoption of Silver as a monetary metal in the new Global financial structure assures a vast meteoric rise in price. Gold & Silver are monetary metals, both and always both. The following is drivel propaganda spewed from the mainstream corrupted mills on the silver story. It is amusing. What follows is the deceptive pathetic paid trash talk. Get out the barf bag.

Begin here with lies, falsehoods, and more lies. Silver is being undermined by its association with gold. While fabricators from jewelry to solar panels are buying the most silver in nine years, prices are languishing. Investors dismiss strong industrial demand and instead focus on the decline in appeal of precious metals as an investment haven. The key events are the USFed pulling back economic stimulus measures, the price inflation as tame, and mainstream stocks rallying. Silver has been dragged down by a year-long slump in gold, held far more by investors in Exchange Traded Funds. The rally in Gold & Silver lasted a full decade, but has ended. Silver fabrication usage including for cars, jewelry, and tableware will rise 2.9% this year to 890.7 million ounces, the most since 2005. Silver content is increasing in vehicles with more electronics loaded onboard, even WIFI. After dropping last year, demand from electronics and battery makers will rebound in 2014, so claim CPM forecasts. See the blatant Bloomberg propaganda (CLICK HERE), which makes no mention of absolutely staggering silver investment demand. The data is regularly covered and cited in the Hat Trick Letter. Michael Bloomberg is a cog in the fascist machinery.

◄$$$ THE EUROPEAN UNION NATIONS (LED BY BELGIUM) ARE BUYING SCRAP GOLD... PORTUGAL USED A HIDDEN CHANNEL TO DUMP ALMOST 60% OF ITS GOLD RESERVES... THE PROJECT WAS WELL HIDDEN, BUT IT BORE BARROSO FINGERPRINTS. $$$

A non-client from Portugal offered some extremely interesting information that ties certain matters and relationships together. An official report was prepared by the Portuguese Parliament about the private market of gold, which they gave the absurd name of Scrap Gold. On page 42, note that in year 2011, the main buyer was Belgium. It is the same hungry buyer of those toxic USTreasurys (laughter heard in background). The government report said, "The shipment of Gold is almost exclusively directed to EU countries (99.8%), and within these, Belgium is the main customer of this product, absorbing more than half of the total purchases (60%). It follows Spain (23%), Italy (14%), and others." Later on page 39 of the report, data is presented. "Exports of such goods [Gold] amounted in 2011 to EUR 519.1 million, equivalent to 13.7 tonnes of Gold, a record amount since 2000. This year exports registered an annual growth rate of 140 percent."

The generous fellow added some perspective, tying together the players. In 1974, tiny Portugal had almost 900 tons of gold in official reserves. Now, the nation has only 382 tons. From 2001 to 2006, Portugal sold 224 tons of gold. The prime minister of Portugal when the nation registered the largest amount of gold sales in dishoarding was Jose Manuel Durao Barroso, currently the President of European Comission. Barroso served as prime minister from 2002 to 2004. It seems quite clear that the EU has a high priority to raid the gold of member nations. See the Portuguese Parliament report (CLICK HERE), translated in above portions by SimaoK in Portugal, who provided the excellent story. He sent it via the Golden Jackass squirrel mail portal.

◄$$$ DISPOSITION OF ITALY'S GOLD WAS DISCLOSED, AS THE NEW YORK FED HAS HALF OF THEIR GOLD... THE LONG-TERM CAPITAL MGMT BUST IN 1998 PROBABLY VACATED A LARGE AMOUNT OF ITALIAN GOLD, PLEDGED AS COLLATERAL FOR THE LONG-TERM CAPITAL MGMT GAMING THAT WENT AGROUND, LED BY THE NOBEL PRIZE WINNING STOOGES, UNDER THE COUNSEL OF JIM RICKARDS. $$$

GATA consultant Ronan Manly disclosed that over half of Italy's gold reserve has been vaulted at the Federal Reserve Bank of New York, with a lesser amount vaulted with the Bank of England in London, and the rest located in the Bank for Intl Settlements. The extent of Italian gold is at best murky to account for and at worst missing, the victim of the Long-Term Capital Mgmt schemes that went awry. Recall the Nobel Prize winners Scholes & Merton were put to work at the firm, whose gold schemes were overseen by the Dorado Shylock Jim Rickards (always one foot inside the cabal door). Italy may have over 1000 tons of gold at the New York Fed, the syndicate hive. The Banca d'Italia has recently published a report detailing the storage locations and composition of the country's gold reserves. The document confirms their gold reserves are held across four vault locations, three outside Italy. Do not be too distracted by the official gimmicked drivel data about Italy being the world's third largest official holder of gold after the United States and Germany. The US is actually far down the list with almost zero gold, at most a pittance gold, but Germany has more than they admit. The leaders in gold reserves are clearly Russia and China, each with over 20,000 tons in (undisclosed) gold tonnage held in reserves. So Italy officially holds 2451.8 tonnes of gold, big deal!

In the detailed three page report focusing exclusively on its gold reserves, the Banca d'Italia revealed that 1199.4 tons (about half) is held in their own vaults under its Palazzo Koch headquarters in Rome, while most of the other half is stored in the Federal Reserve Bank gold vault in New York City. The report also states that smaller (but unspecified) amounts are stored at the Bank of England in London, and at the vaults of the Swiss National Bank in Bern Switzerland. Curiously, some other type details were provided. The gold held in Rome includes 871,713 coins, but whose weight is only 4.1 tons, not even half of 1 percent. The 95,493 gold bars in the Rome vault form over 99.9% of the reserves tonnage. They come as standard trapezoidal shaped bars, also as bricks of US type, and another panetto (loaf) type. Some depletion was admitted during the 1970 decade, toward contributions to the European Monetary Cooperation Fund (EMCF) and more recently to the European Central Bank (ECB) formation.

Interestingly, Sweden and Finland both recently published the locations of their gold reserves. They each revealed only very small percentages of their gold as being stored in the SNB vaults in Switzerland. Of the Sweden 125.7 tons of gold reserves, only 2.8 tons or 2.2% is stored with the SNB vaults. For Finland, only 3.4 tonnes (=6.9%) of its 49.0 tons of gold reserves are stored with the SNB in Switzerland. Oddly on the Italian gold tale, a disagreement between the RAI and La Repubblica newspaper accounts, versus the central bank account, indicates by implication that the Swiss National Bank gold vaults are located in Bern. The SNB currently will not confirm this fact publically and does not go beyond saying that it stores its own gold domestically and internationally in decentralised locations for security reasons. See the Gold Core article (CLICK HERE) and the Resource Investor article (CLICK HERE).

The Silver Fix is to be scrapped, which has given renewed hope to the precious metals community. The Gold Fix is already in deep trouble, with Deutsche Bank pulling out, unable even to sell its fix seat in London. The Jackass does not get excited, since naked shorting of Gold & Silver futures contracts is still heavily active. See the UK Reuters article (CLICK HERE).

The CME plans possibly to lower the Gold & Silver margins for COMEX trades, to put daily limits on price movements. See the Kitco article (CLICK HERE) and Market Watch article (CLICK HERE). The Jackass again is not too excited, since linear price movement is not what to look for. Instead, expect powerful quantum leaps from systemic change tied to steps in the return of the Gold Standard.

Andrew Maguire believes in the next six months the CME will be irrelevant toward setting the gold price, calling them eventually a non-player. He studies the mechanics of the synthetic markets. See the King World News article (CLICK HERE).

Consider the encouraging viewpoint of John Embry from Sprott Asset Mgmt. He stated, "The other thing that caught my attention was that the CME is now talking about proposed limits on the daily price movements in Gold & Silver. Keep in mind that when Gold & Silver were getting pounded with all of these flash crashes, there were no limits. I was talking with Eric Sprott about this and we both agreed that this is probably an indication that Western central planners realize that Gold & Silver are ready to explode to the upside. They want to make sure the upside move is managed to some degree, so it does not get out of control. Regardless, I consider this development to be extraordinarily positive." See the King World News article (CLICK HERE).

James Turk of GoldMoney identified the tight situation for gold supply within the system. He commented, "The tight availability of physical metal for immediate delivery is another indication that the precious metals remain at artificially low levels. The backwardation in gold went out to six months on Friday [May 2nd], and the jump in the Gold/Silver ratio was a good sign that silver had also been pushed too low by the shorts. The backwardation could remain high even though Gold & Silver prices jumped today, because the disconnect between the physical market and the paper market seems to be growing. In other words, the buyers of physical metal are paying increasingly less attention to what is happening in the paper market. These buyers know that they will have to wait months for delivery if they buy a paper contract, and they are becoming less willing to do that. They want their orders for physical metal delivered within the normal two-day settlement period. So these buyers are willing to pay the premium to get their metal without any long waiting period." The backwardation in price by six months on the contract listings gives signals of high potential for extreme and sudden upward price moves. See the King World News article (CLICK HERE).

The London LBMA gold vaults are empty. A direct account is given by a person on the site. The New York COMEX gold vaults are empty. Price spikes could be due, long overdue. See the In Gold We Trust article (CLICK HERE) and the Silver Doctors article (CLICK HERE).

The Kiev Regime is preparing a dubious gold purchase to bolster reserves. Payment could go directly to Russia in forced gold IOU settlement, except the IMF is broke and without funds at all. So the Ukraine Govt wishes to fortify its core financial position, after the USGovt mercenaries stole 33 tons in mid-March. They might ignore large Gazprom bills and maturing bonds, and buy gold (likely later stolen). The Germans might be on receiving end of the gold for repatriation. See the Zero Hedge article (CLICK HERE).

The output from Ghana gold mine activity is expected to fall by 14%, due to halts in operations. The Gold price is low, projects will go suspended, and mines will go under care and maintenance (means mothballed in the parlance). The Ghana gold sector is the second largest in Africa and #8 worldwide. The cutbacks will remove 500,000 ounces in gold output this year. Output for 2014 is estimated at 3.1 million ounces in downward revision. It peaked at 4.3 moz in 2012, and was 3.6 moz in 2011. See the Bloomberg article (CLICK HERE).

A downturn in Gold exploration will hit future production, and soon. Michael Chender of Metals Economics Group (MEG) gave the keynote speech at the Denver Gold Group's European Gold Forum in Zurich. His elite analysis group suggests a significant squeeze on potential future gold supply. Several factors are at work. There has been a notable decline in major new gold discoveries over the past several years. The spate of cost cutting has reduced exploration budgets. MEG expects a huge impact on resource and reserve replacement going forward. Last year, Chender calculated exploration expenditures fell from around $10.0 billion to $6.7 billion, the trend remaining downwards. Exploration activity by juniors was down 40% last year as funding dried up. The niche historically is most successful at discoveries of major new gold deposits, but struggles to stay alive. The proportion of spending on grassroots (fresh virgin) exploration has dropped from 40% to 30% as companies stay close to existing project territory. Concern over risk has reduced activity in Africa and Indonesia. See the MineWeb article (CLICK HERE).

Canadian silver production has declined significantly, like over 40%. Output declined from 119.5 metric tons (3.84 moz) in January and February 2013, to 70 metric tons (2.25 moz) in the first two months of 2014. The blame goes to the closure of Glencore Xstrata's Brunswick and Perseverance zinc mines in Eastern Canada. Also, the highest grade silver project in Canada was mothballed and taken offline. Alexco Resources Bellekeno mine was put on care and maintenance in 4Q2013 with price factor cited. See the SRS Rocco article (CLICK HERE).